Complete a-e2 please and thank you The Cartton Corporation has $4 million in eamings after taxes and 1 million shares outstanding. The stock trades at a P/E of 10. The firmbax $1 million in excess cash.a. Compute the current price of the stock. (Do not round Intermediate calculations and round your answer to 2 decimal places.)b. If the $1 million is used to pay dividends, how much will dividends per share be? (Do not round intermediate calculations andround your answer to 2 decimal places.)c. If the $1 million is used to repurchase shares in the market at a price of $41 per share, how many shares will be acquired? (Do notround intermediate calculations and round your answer to the nearest whole share.)Mumber of shares acquiredsharesd. What will the new earnings per share be? (Use the rounded number of shares computed in part c but do not round any otherintermediate calculations. Round your answer to 2 decimal places.)e-1. If the P/E ratio remains constant, what will the price of the securities be? (Use the rounded answer from part d and round youranswer to the nearest whole dollar.)Stock pricee-2. By how much, in terms of dollars, did the repurchase increase the stock price? (Use the rounded whole dollar answer from partSellwithring Bound your norwer the nearest whole dollar) The Cartton Corporation has $4 million in eamings after taxes and 1 million shares outstanding. The stock trades at a P/E of 10. The firmbax $1 million in excess cash.a. Compute the current price of the stock. (Do not round Intermediate calculations and round your answer to 2 decimal places.)b. If the $1 million is used to pay dividends, how much will dividends per share be? (Do not round intermediate calculations andround your answer to 2 decimal places.)c. If the $1 million is used to repurchase shares in the market at a price of $41 per share, how many shares will be acquired? (Do notround intermediate calculations and round your answer to the nearest whole share.)Mumber of shares acquiredsharesd. What will the new earnings per share be? (Use the rounded number of shares computed in part c but do not round any otherintermediate calculations. Round your answer to 2 decimal places.)e-1. If the P/E ratio remains constant, what will the price of the securities be? (Use the rounded answer from part d and round youranswer to the nearest whole dollar.)Stock pricee-2. By how much, in terms of dollars, did the repurchase increase the stock price? (Use the rounded whole dollar answer from partSellwithring Bound your norwer the nearest whole dollar)

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The Cartton Corporation has $4 million in eamings after taxes and 1 million shares outstanding. The stock trades at a P/E of 10. The firm has $1 million in excess cash. a. Compute the current price of the stock. (Do not round Intermediate calculations and round your answer to 2 decimal places.) Current price b. If the $1 million is used to pay dividends, how much will dividends per share be? (Do not round intermediate calculations and round your answer to 2 decimal places.) Dividenda per share c. If the $1 million is used to repurchase shares in the market at a price of $41 per share, how many shares will be acquired? (Do not round intermediate calculations and round your answer to the nearest whole share.) Number of shares acquired shares

The Cartton Corporation has $4 million in eamings after taxes and 1 million shares outstanding. The stock trades at a P/E of 10. The firm has $1 million in excess cash. a. Compute the current price of the stock. (Do not round Intermediate calculations and round your answer to 2 decimal places.) Current price b. If the $1 million is used to pay dividends, how much will dividends per share be? (Do not round intermediate calculations and round your answer to 2 decimal places.) Dividenda per share c. If the $1 million is used to repurchase shares in the market at a price of $41 per share, how many shares will be acquired? (Do not round intermediate calculations and round your answer to the nearest whole share.) Number of shares acquired shares

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

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Blackboard Learn Bb 2193555 + i learn-us-east-1-prod-fleet02-xythos.content.blackboardcdn.com/5f7ce11c673e5/2193555?X-Blackboard-Expiration=1648004400000&X-Blackboard-Signature=9lhjClppXf7wSeUqx.. E * O w WordCounter - Cou... y! Yahoo A Regions Bank | Che.. Welcome, Justin – B. * eBooks, Textbooks... O Jefferson State Co... Electronics, Cars, Fa. C Home | Chegg.com 2193555 1 / 1 100% + | PR 14-4B Entries for bonds payable and installment note transactions The following transactions were completed by Montague Inc., whose fiscal year is the calendar year: оВJ. 3, 4 V 3. $61,644,484 Year 1 Еxcel July 1. Issued $55,000,000 of 10-year, 9% callable bonds dated July 1, Year 1, at a market (effective) rate of 7%, receiving cash of $62,817,040. Interest is payable semiannually on December 31 and June 30. General Ledger Oct. 1. Borrowed $450,000 by issuing a six-year, 8% installment note to Intexicon Bank. The note requires annual payments of $97,342, with the first payment occurring on…
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AutoSave Off H Document2 - Word P Search (Alt+Q) Sign in File Design References Mailings Review View Help Grammarly Picture Format P Comments A Share Home Insert Draw Layout P Find - - A A Aa v A = - E - E G Times New Roman v 12 Normal No Spacing Heading 1 Replace = = 1E v Editor Open Grammarly Paste BIU I U v - 2. A - ab x, x' A . A Select v Undo Clipboard a Font Paragraph Styles Editing Editor Grammarly a. At the beginning of the year, Addison Company's assets are $200,000 and its equity is $150,000. During the year, assets increase $80,000 and liabilities increase $46,000. What is the equity at year-end? Assets Liabilities Equity Beginning $ 200,000 = 150,000 Change 80,000 = 46,000 + Ending Page 1 of 1 O words Text Predictions: On * Accessibility: Good to go O Focus 110% 9:58 PM P Type here to search 49°F 3/20/2022 近

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合日 Document1 Q. Search in Document Home Insert Draw Design Layout References Mailings Review View + Share a A. A- E -E - E , E E Times New R... - AaBbCcDc AaBbCcDdEe AaBb( AabbCcDdEe AaBbCcDdEe AaBbCcDdEe AgBbCcDdEe AgBbCcDdEe Paste в I U - abe X, x2 Normal Heading 1 Subtle Emph.. Emphasis Styles Pane No Spacing Heading 2 Title Subtitle You are considering opening your own restaurant. To do so, you will have to quit your current job, which pays $46k per year, and cash in your life savings of $200k, which have been in a certificate of deposit paying 6% per year. You will need this $200k to purchase equipment for your restaurant operations. You estimate that you will have to spend $4k during the year to maintain the equipment so as to preserve its market value at $200k. Fortunately, you own a building suitable for the restaurant. You currently rent out this building on a month-by-month basis for $2,500 per month. You anticipate that you will spend $50k for food, $40k for extra help, and…
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