Assume that Toyota has a market value equal to its book value. Currently, the firm hasexcess cash of $9,300 and other assets of $24,700. Equity is worth $34,000. The firmhas 650 shares of stock outstanding and net income of $3,900. What will the stock priceper share be if the firm pays out its excess cash as a cash dividend?Multiple ChoiceO$65$71$38$44$50

ssume that Toyota has a market value equal to its book value. Currently, the firm xcess cash of $9,300 and other assets of $24,700. Equity is worth $34,000. The as 650 shares of stock outstanding and net income of $3,900. What will the stock per share be if the firm pays out its excess cash as a cash dividend? Multiple Choice

ssume that Toyota has a market value equal to its book value. Currently, the firm xcess cash of $9,300 and other assets of $24,700. Equity is worth $34,000. The as 650 shares of stock outstanding and net income of $3,900. What will the stock per share be if the firm pays out its excess cash as a cash dividend? Multiple Choice

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Based on a discounted free cash flow method, you have estimated the value of a company to be $720 million. The company has $145 million of long-term debt outstanding (common equity comprises the rest). There are 11.0 million shares of common stock outstanding. What is the firm's estimated value per share of common stock? 13.18 52.27 65.00 65.45 O 78.64
pm.7
Please Provide correct answer with option
A firm has 7,000 outstanding shares with current value of 10£ per share. Planned dividend is £5 per share. What is the ex-dividend share price? How much is the share price if the company decides to use the cash it had originally earmarked for dividend for a share repurchase instead? A. £5, £10 B. £10, £5 C. £8, £10 D. £2, £12 ( explain well with step by step answer ).
2
Give typing answer with explanation and conclusion A share of common stock is paying $3.50 per share, but the corporation only pays 40% of its earnings as cash dividends. The anticipated growth of this stock is 8%. Find the value of this stock if an investor wants a yield of 10%. If the stock is selling for $45, what is the expected yield?
In the above example, suppose the firm had paid $80 per share when buying back shares with its $100 in cash. (Assume that the firm can buy back fractional shares.) In this and the following two questions, fill in the blanks in the table below. Cash Other assets Total market value of stock Shares Share price Do not use $ sign. Answer to nearest whole number. The missing value for a is: Before buyback $100 $400 $500 10 $50 After buyback 0 $400 a b C
The following financial information is available on Rawls Manufacturing Company: Current per share market price $48.00 Current per share dividend $3.50 Current per share earnings $6.00 Beta 1.1 Expected rate of return on market 12.0% Risk-free rate 6.0% Expected long-term growth rate 5.0% Rawls can issue new common stock to net the company $44 per share. Determine the cost of external equity capital using the dividend capitalization model approach. (Compute the answer to the nearest 0.1%.) a 12.6% b. 14.4% c.13.4% d.12.7%
please answer the question as in attached file asap. thanks

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