Question: Carmen owns 300 000 shares of Wiseguy Entertainment Wiseguy has just
Carmen owns 300,000 shares of Wiseguy Entertainment. Wiseguy has just declared a $0.20 per share dividend on a stock selling at $25.20. What must Carmen do if she wants no cash dividends at this time, $40,000 of dividends, or $80,000 worth of dividends? Show her wealth in paper and cash under each scenario. Assume a world of no taxes.
Relevant QuestionsScott currently owns 500 shares of Twelve Colonies, Incorporated. Twelve Colonies has a high-payout dividend policy, and this year will pay $2.00 cash dividend on its shares selling currently at $18.00. Scott wants a low ...Northeast Tires announces a reverse split. The company will consolidate outstanding shares through a 1- 5 split. That is, every 5 shares you currently own will be consolidated into 1 share. The current price of the stock is ...Joan currently owns 800 shares of RST Inc. RST has a high-dividend-payout policy and this year will pay $3.00 cash dividend on its shares selling currently at $30.00 per share. Joan wants a low-dividend-payout policy of 5% ...How can a changing exchange rate impact a company’s profits on one of its foreign operations?Using the data from Problem 7, determine what you would lose if you went the wrong way for the arbitrage. Explain this result.
Post your question