Question: A firm s shares currently sell for 32 48 with 5 million
A firm’s shares currently sell for $32.48, with 5 million shares outstanding. The firm is considering a 20% stock dividend, in which 100 shares become 120 shares. After the stock dividend, at what price will the shareholders’ value be unchanged? (Hint: Consider shareholder value to be the market capitalization, which equals the number of shares outstanding multiplied by the stock price.) If the stock price became $27.50 after the stock dividend, do the shareholders benefit?
Answer to relevant QuestionsA firm’s shares currently sell for $3.50 with 4 million shares outstanding. The firm plans to reverse split its stock by combining two shares into one share. If the price after this reverse split is $6.52, have ...The stock of Up-and-Away Inc. is selling for $80 per share and is currently paying a quarterly dividend of $0.25 per share. What is the dividend yield on Up-and-Away stock? Casual Construction Corporation (CCC) earned $60,000,000 during 2012. The firm expects to earn $63,000,000 during 2013, in line with its long-term earnings growth rate. There are 20 million CCC shares outstanding, and the ...What is the financial planning process? What is a strategic plan? Describe the roles that financial managers play with regard to strategic planning. What is the difference between the conservative strategy, the aggressive strategy, and the matching strategy for funding the long-term trend and the seasonal fluctuations in a firm’s total current assets? Which strategy is ...
Post your question