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Balance sheet and market value

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Dividend Policy Problems.docx Download Attachment;Consider the following market value Balance Sheet;Cash;71,000;Other Assets;722,000;Total;793,000;Equity;793,000**;Total;793,000;**21,000 shares outstanding;The firm has declared a $2.10 per share cash dividend and the ex-dividend date is tomorrow.;1. What is the current (with dividend) price of the companys stock?;2. What should the value of a share be ex-dividend?;3. Prepare a market value Balance Sheet after the dividend is paid.;4. Suppose that instead of the cash dividend, the company announces a stock repurchase plan.;It will use $30,000 to repurchase outstanding shares. How many shares will be outstanding;after the repurchase?;5. What will the per share price be if the repurchase is successful?;View Full Attachment;Additional Requirements

 

Paper#18282 | Written in 18-Jul-2015

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