Person X on the board of directors of company B, and the company has declared its policy to pay dividends of $550,000. Immediately, there are 275,000 shares outstanding, and the earnings per share is $6. It seems like the stock should trade for $45 after the ex-dividend date. If rather of paying a dividend, the management has chosen to repurchase stock, To determine: The number of shares repurchased.

Question

Want to see the full answer?

Answer 1

Question

Chapter 13, Problem 2.2MC

Summary Introduction

Case summary:

Person X on the board of directors of company B, and the company has declared its policy to pay dividends of $550,000. Immediately, there are 275,000 shares outstanding, and the earnings per share is $6. It seems like the stock should trade for $45 after the ex-dividend date. If rather of paying a dividend, the management has chosen to repurchase stock,

To determine: The number of shares repurchased.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

What are bonus shares?

Why would a firm repurchase its stock? Discuss.

How much is the total Share Capital? How much is the total Additional Paid In Capital? How much is the total Contributed Capital? How much is the Total Shareholders ’Equity?

Answer 2

Question

Chapter 13, Problem 2.2MC

Summary Introduction

Case summary:

Person X on the board of directors of company B, and the company has declared its policy to pay dividends of $550,000. Immediately, there are 275,000 shares outstanding, and the earnings per share is $6. It seems like the stock should trade for $45 after the ex-dividend date. If rather of paying a dividend, the management has chosen to repurchase stock,

To determine: The number of shares repurchased.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 13, Problem 2.2MC

Summary Introduction

Case summary:

Person X on the board of directors of company B, and the company has declared its policy to pay dividends of $550,000. Immediately, there are 275,000 shares outstanding, and the earnings per share is $6. It seems like the stock should trade for $45 after the ex-dividend date. If rather of paying a dividend, the management has chosen to repurchase stock,

To determine: The number of shares repurchased.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 13, Problem 2.2MC

Summary Introduction

Case summary:

Person X on the board of directors of company B, and the company has declared its policy to pay dividends of $550,000. Immediately, there are 275,000 shares outstanding, and the earnings per share is $6. It seems like the stock should trade for $45 after the ex-dividend date. If rather of paying a dividend, the management has chosen to repurchase stock,

To determine: The number of shares repurchased.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 13, Problem 2.2MC

Summary Introduction

Case summary:

Person X on the board of directors of company B, and the company has declared its policy to pay dividends of $550,000. Immediately, there are 275,000 shares outstanding, and the earnings per share is $6. It seems like the stock should trade for $45 after the ex-dividend date. If rather of paying a dividend, the management has chosen to repurchase stock,

To determine: The number of shares repurchased.

Answer 6

Chapter 13, Problem 2.2MC

Summary Introduction

Case summary:

Person X on the board of directors of company B, and the company has declared its policy to pay dividends of $550,000. Immediately, there are 275,000 shares outstanding, and the earnings per share is $6. It seems like the stock should trade for $45 after the ex-dividend date. If rather of paying a dividend, the management has chosen to repurchase stock,

To determine: The number of shares repurchased.

Answer 7

Chapter 13, Problem 2.2MC

Summary Introduction

Case summary:

Person X on the board of directors of company B, and the company has declared its policy to pay dividends of $550,000. Immediately, there are 275,000 shares outstanding, and the earnings per share is $6. It seems like the stock should trade for $45 after the ex-dividend date. If rather of paying a dividend, the management has chosen to repurchase stock,

To determine: The number of shares repurchased.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 13 - What is meant by the term dividend payout ratio?Ch. 13 - Prob. 2RQ Ch. 13 - Prob. 3RQ Ch. 13 - Prob. 4RQ Ch. 13 - Prob. 5RQ Ch. 13 - Prob. 6RQ Ch. 13 - Prob. 7RQ Ch. 13 - Prob. 8RQ Ch. 13 - Prob. 9RQ Ch. 13 - Prob. 10RQ

Videos

Want to see the full answer?

Chapter 13 Solutions