Question: Templeton Care Facilities Inc is contemplating a stock dividend The
Templeton Care Facilities, Inc. is contemplating a stock dividend. The firm’s stock price had risen over the last three years and was trading at $150 per share. The firm’s board of directors felt that the trading range should be around $50 to $100, so they wanted to initiate a stock dividend that, other things remaining the same, would result in a $50 share price. What should the stock dividend be so as to result in the desired change in the firm’s stock price?
Answer to relevant QuestionsReconsider the problem faced by Templeton Care Facilities, Inc. from Study Problem. If the firm’s board of directors decided to use a stock split rather than a stock dividend, how many new shares should the firm issue for ...The Caraway Seed Company sells specialty gardening seeds and products primarily to mail-order and Internet customers. The firm has $200,000 available for distribution as a cash dividend immediately and plans to shut down its ...The balance sheet of the Thompson Trucking Company (TTC) follows:Thompson Trucking Company Balance Sheet, December 31, 2013 ($ millions)TTC had sales for the year ended 12/31/13 of $50 million. The firm follows a policy of ...The following table contains current asset and current liability balances for Microsoft Corporation (MSFT):a. Assume that you are the lead banker for the syndicate of banks that manages Microsoft Corporation’s line of ...You plan to borrow $20,000 from the bank to pay for inventories for a gift shop you have just opened. The bank offers to lend you the money at 10 percent annual interest for the six months the funds will be needed (assume a ...
Post your question