BARUCH FUND OF CORPORATE FIN. W/CONNECT
BARUCH FUND OF CORPORATE FIN. W/CONNECT
10th Edition
ISBN: 9781264531820
Author: BREALEY
Publisher: MCG CUSTOM
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Chapter 17, Problem 1QP

a)

Summary Introduction

To determine: The correct date for each terms.

a)

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Explanation of Solution

Matching table:

BARUCH FUND OF CORPORATE FIN. W/CONNECT, Chapter 17, Problem 1QP , additional homework tip  1

b)

Summary Introduction

To determine: The date at which one of the stock price likely to fall by about the amount of the yield.

b)

Expert Solution
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Explanation of Solution

The share cost is relied upon to fall on June 7, the ex-dividend date. The value falls on this day in light of the fact that, as the share goes ex-profit, the share proprietors are not, at this point qualified to gather the profit payable on July 2.

c)

Summary Introduction

To determine: The prospective dividend yield.

c)

Expert Solution
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Explanation of Solution

Computation of dividend yield:

BARUCH FUND OF CORPORATE FIN. W/CONNECT, Chapter 17, Problem 1QP , additional homework tip  2

Hence, the prospective dividend yield is 1.11%.

d)

Summary Introduction

To determine: The percentage pay-out ratio.

d)

Expert Solution
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Explanation of Solution

Computation of percentage pay-out ratio:

BARUCH FUND OF CORPORATE FIN. W/CONNECT, Chapter 17, Problem 1QP , additional homework tip  3

Hence, the percentage pay-out ratio is 15.79%.

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