A company has €3B in cash and has chosen to pay a dividend of €3B. If she had kept this cash in BTAN, what is the present value of the additional taxes paid, if the tax rate is 15% and the risk-free interest rate is 10%?

Oracle has a market cap of €150M and €5M in stock. She wants to raise €33.33m (with DPS). New shares issued at €20 per unit and each shareholder receives one preferential subscription right per share. How many preferential subscription rights to buy a new share?

Answer rating: 100% (QA)

Company Dividend and BTAN Taxes A company has 3B in cash and pays a 3B dividend If they kept the cas... View the full answer