What is a share repurchase? When a company buys back its own shares at market prices When a company buys back its own shares at IPO prices When a company buys shares of its competitors, driving prices
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- What is a share repurchase? When a company buys back its own shares at IPO prices When a company buys back its own shares at market prices When a company buys shares of its competitors, driving prices downExplain what ‘short selling’ means and how short-sellers profit from a fall in share prices.Indicate whether its TRUE or FALSE. Then give an explanation. Firms concerned with the sharemarket reaction to dividend announcements may adopt a “sticky” dividend policy.
- What are the share price implications of increasing and decreasing leverage to a firm?Suppose that in April 2019, Nike Inc. had sales of $36,403 million, EBITDA of $5,214 million, excess cash of $5,245 million, $3,818 million of debt, and 1,583.3 million shares outstanding. a. Using the average enterprise value to sales multiple in the table here,, estimate Nike's share price. b. What range of share prices do you estimate based on the highest and lowest enterprise value to sales multiples in the table above? c. Using the average enterprise value to EBITDA multiple in the table above, estimate Nike's share price. d. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above? a. Using the average enterprise value to sales multiple in the table above, estimate Nike's share price. Nike's share price using the average enterprise value to sales multiple will be $ (Round to the nearest cent.) b. What range of share prices do you estimate based on the highest and lowest enterprise value to sales multiples…Which statement about book value per share (BVPS) is true? A. Market price per share usually approximates BVPS. B. BVPS can be misleading because it is based on historical cost. C. Market price per share greater than BVPS is an indication of an overvalued stock. D. BVPS is the amount that would be paid to shareholders if the firm is sold to another firm.
- Which of the following theories is supported by the argument that shareholders can transform a company dividend policy into a different policy by means of investors buying and selling on their own account? a. dividend irrelevance theory b. "bird-in-the-hand" theory C. residual distribution model d. tax preference theoryWhich of the following techniques allow firms to gain market access in a new market? Select one: a. buyback b. All of the answers c. offset d. switch tradingDividend Policy. How is it possible that dividends are so important, but at the same time, dividend policy is irrelevant? If increases in dividends tend to be followed by (immediate) increases in share prices, how can it be said that dividend policy is irrelevant?
- Which statement about book value per share (BVPS) is true???A. Market price per share usually approximates BVPS.B. BVPS can be misleading because it is based onhistorical cost.C. Market price per share greater than BVPS is anindication of an overvalued stockD. BVPS is the amount that would be paid to shareholdersif the firm is sold to another firmWhich of the following should lead to a lower share price: (as the result of a mechanical effect, not due to signaling) 1. firm does a stock split 2. firm pays dividends 3. firm repurchases shares 4. firm issues shares 5. firm issues debt 6. firm makes an acquisition at a fair price, with negligible synergies O 1,2,3 0 23 O 1,2,3,4,5,6 O 2,3,5,6 O 1,2,3,5 0 1,2 O 2,3,5Why would a company want to repurchase some of its own stock that they have previously issued?’