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FIN - Consider the following market value Balance Sheet




Question;Consider the following market value Balance Sheet:Cash71,000Other Assets722,000Total793,000Equity793,000**Total793,000**21,000 shares outstandingThe 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 outstandingafter the repurchase?5. What will the per share price be if the repurchase is successful?


Paper#48194 | Written in 18-Jul-2015

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