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?
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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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
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?
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