Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN: 9781337902571
Author: Eugene F. Brigham, Joel F. Houston
Publisher: Cengage Learning
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Chapter 14, Problem 5TCL
Summary Introduction
To explain: Whether A Company is repurchasing stock or issuing new stock and its year end capitalization over the 5-year period.
Share Repurchase:
When a company issued its shares in the open market and finds that the share issued by the company are undervalued, the management decides to buy back its own shares to decrease the number of shares outstanding.
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Using the data in the following table, E, calculate the return for investing in this stock from January 1 to December 31. Prices are after the dividend has been paid.
The return for investing in this stock from January 1 to December 31 is ☐ %. (Round to two decimal places.)
Data table
(Click on the following icon in order to copy its contents into a spreadsheet.)
Stock Price
Dividend
Jan 1
$49.96
Mar 31
$51.07
$0.59
Jun 30
$49.52
$0.58
Sep 30
$52.02
$0.77
Dec 31
$52.39
$0.77
Print
Done
- X
Go to Yahoo.com’s financial website and enter Apple, Inc.’s stock symbol, AAPL. Answer the following questions concerning Apple, Inc.
At what price did Apple’s stock last trade?
What is the 52-week range of Apple’s stock?
When was the last time Apple’s stock hit a 52-week high?
What is the annual dividend of Apple’s stock?
How many current broker recommendations are strong buy, buy, hold, sell, or strong sell?
What is the average of the broker recommendations?
What is the price-earnings ratio?
Consider the following information on the stock market in a small economy.
Shares
Company Outstanding Price, beginning of year Price, end of year
1
100
10
2
1,000
points
3
10,000
$ 100
$ 20
$ 3
$ 94
$ 25
$ 6
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Instructions: Enter your responses rounded to one decimal place.
a. Compute a price-weighted stock price index for the beginning of the year and the end of the year. What is the percentage change?
The percentage change is |
%.
b. Compute a value-weighted stock price index for the beginning of the year and the end of the year. What is the percentage change?
(Note: The value of a firm is calculated by multiplying the number of its shares by the prices of those shares.)
The percentage change is
%.
Chapter 14 Solutions
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
Ch. 14 - Prob. 1QCh. 14 - Prob. 2QCh. 14 - Would it ever be rational for a firm to borrow...Ch. 14 - Modigliani and Miller (MM), on the one hand, and...Ch. 14 - Prob. 5QCh. 14 - One position expressed in the financial literature...Ch. 14 - Prob. 7QCh. 14 - What is the difference between a stock dividend...Ch. 14 - Most firms like to have their stock selling at a...Ch. 14 - Prob. 10Q
Ch. 14 - Prob. 11QCh. 14 - RESIDUAL DIVIDEND MODEL Altamonte...Ch. 14 - Prob. 2PCh. 14 - STOCK REPURCHASES Gamma Industries has net income...Ch. 14 - Prob. 4PCh. 14 - EXTERNAL EQUITY FINANCING Coastal Carolina Heating...Ch. 14 - RESIDUAL DIVIDEND MODEL Walsh Company is...Ch. 14 - DIVIDENDS Brooks Sporting Inc. is prepared to...Ch. 14 - Prob. 8PCh. 14 - ALTERNATIVE DIVIDEND POLICIES In 2018, Keenan...Ch. 14 - Prob. 10SPCh. 14 - Prob. 11ICCh. 14 - Prob. 1TCLCh. 14 - Prob. 2TCLCh. 14 - Prob. 3TCLCh. 14 - Investors are more concerned with future dividends...Ch. 14 - Prob. 5TCL
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