The survivors of the Holocaust and the heirs of the Holocaust victims filed a case in the federal district court in the U.S. against various Hungarian entities alleging that they have expropriated property from the Hungarian Jews. The plaintiffs did not try to seek remedies from the Hungarian court nor they provided a legally compelling reason for not doing so. The defendants then asked the court to dismiss the court. To find: in the case that the request of the defendant is supported by the principle of comity.

Question

Paradox Corporation is evaluating an extra dividend verses a share repurchase. In either case, $14,500 would be spent. Current earnings are $1.65 per share, and the stock currently sells for $58 per share. There are 2,000 shares outstanding. Ignore taxes and other imperfections in answering the following questions: Required Evaluate the two alternatives in terms of the effect on the price per share of the stock and shareholder wealth. What will be the effect on Paradox Corporation’s EPS and P/E ratio under the two different scenarios? In the real world, which of these actions would you recommend? Why?

Answer 1

Question

Chapter 11, Problem 7BCP

Summary Introduction

Case summary: The survivors of the Holocaust and the heirs of the Holocaust victims filed a case in the federal district court in the U.S. against various Hungarian entities alleging that they have expropriated property from the Hungarian Jews. The plaintiffs did not try to seek remedies from the Hungarian court nor they provided a legally compelling reason for not doing so. The defendants then asked the court to dismiss the court.

To find: in the case that the request of the defendant is supported by the principle of comity.

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