You recently won a large sum of money in the National Lottery and decided to buy shares in Praxis Ltd, a listed company. You purchased 90 000 shares. The following information has been provided to you regarding Praxis Ltd: Number of shares outstanding: 600 000. Profit for the year: R2 900 000. The company intends paying 8% of the issued shares as a dividend. Current market price of share: R40 Praxis Ltd is considering a share buy-back program to utilise its excess cash reserves. The company's board of directors is divided on the decision, with some arguing for the potential benefits and others concerned about potential drawbacks. Calculate your percentage holding and market value of your holding before the share dividend and after the share dividend.State , what will the expected market price of Praxis Ltd's shares be immediately after the share dividend?

You recently won a large sum of money in the National Lottery and decided to buy shares in Praxis Ltd, a listed company. You purchased 90 000 shares. The following information has been provided to you regarding Praxis Ltd: Number of shares outstanding: 600 000. Profit for the year: R2 900 000. The company intends paying 8% of the issued shares as a dividend. Current market price of share: R40 Praxis Ltd is considering a share buy-back program to utilise its excess cash reserves. The company's board of directors is divided on the decision, with some arguing for the potential benefits and others concerned about potential drawbacks. Calculate your percentage holding and market value of your holding before the share dividend and after the share dividend.State , what will the expected market price of Praxis Ltd's shares be immediately after the share dividend?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter20: Financing With Derivatives

Section: Chapter Questions

Problem 12P

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