4. Keiser, Inc is determining whether to do a dividend or a repurchase. Use the table...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
4. Keiser, Inc is determining whether to do a dividend or a repurchase. Use the table below to answer the following questions. Each question is worth 5 points each. a. What will the stock sell for tomorrow? b. What will the Balance Sheet look like tomorrow after the dividend is paid? c. What effect will the repurchase have on the equity of the company? d. How many shares will be outstanding after the repurchase? e. What will the price per share be after the repurchase? $120,000 Liabilities $476,600 Equity $596,600 Total L/E $100,000 $496,600 Cash Fixed Assets Total Asset $596,600 Dividend Declared $1.15 Ex-Dividend Date Tomorrow Shares Outstanding 19,000 Repurchase $21,850 4. Keiser, Inc is determining whether to do a dividend or a repurchase. Use the table below to answer the following questions. Each question is worth 5 points each. a. What will the stock sell for tomorrow? b. What will the Balance Sheet look like tomorrow after the dividend is paid? c. What effect will the repurchase have on the equity of the company? d. How many shares will be outstanding after the repurchase? e. What will the price per share be after the repurchase? $120,000 Liabilities $476,600 Equity $596,600 Total L/E $100,000 $496,600 Cash Fixed Assets Total Asset $596,600 Dividend Declared $1.15 Ex-Dividend Date Tomorrow Shares Outstanding 19,000 Repurchase $21,850
Expert Answer:
Answer rating: 100% (QA)
Answer 4 Keiser INC a Stock sell means buy shares today and sell it tomorrow As per the current Bala... View the full answer
Related Book For
Financial Accounting an introduction to concepts, methods and uses
ISBN: 978-0324789003
13th Edition
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
Posted Date:
Students also viewed these accounting questions
-
Use the table below to answer the questions that follow: a. If this table reflects the supply of and demands for tickets to a particular World Cup soccer game, what is the stadium capacity? b. If the...
-
Use the table below to answer the questions: Interest Asset rate demand (in %) (billions) 14 $200 13 300 12 400 11 500 (a) If the transactions demand for money equals 10% of nominal GDP, the nominal...
-
Use the table below to answer the following questions: Microeconomic Problems 1. Given the simple demand schedule information in the table above, calculate the coefficient of price elasticity of...
-
State Newtons second law of motion. What are the limitations on the use of Newtons second law? Explain.
-
Draw the structure of the amide formed by reacting propylamine with propanoic acid.
-
Consider an oblique shock wave with \(M_{1}=4.0\) and \(\beta=50^{\circ}\). This shock wave is incident on a constant-pressure boundary, as sketched in Fig. 5.26. For the flow downstream of the...
-
In 2022 interest rates were at a record low and the big banks in Australia made nearly $30 billion in in profits (Lannin 2022). Many Australians took advantage of record low interest rates to enter...
-
Did any of the parties involved in this case commit an ethical violation? Discuss. Thomas Bracken (owner of 1513 North Wells, LLC), Mark Sutherland, and Alex Pearsall were limited partners in 1515...
-
Fluid mechanics NUMERICAL PROBLEMS (4 X 3 = 12 Points) Q1. An oil flows through 50.0 m of cast iron pipe having a diameter of 0.25 m. If the volumetric flow is 0.40 m^3/s, determine the head loss in...
-
New Age Solar sells and installs solar panels for residential homes. The companys sales representatives contact and pay a personal visit to potential customers to present the benefits of installing...
-
a) Pinion 2, which is located on shaft "a", rotates at 1800 rpm, and transmits 75kW to the idler gear 3 located on shaft "b", refer to Figure 6(a). The pinion has a pitch diameter of 85 mm, and the...
-
State which of the following is a monetary policy target: a. Full employment b. Fluctuations in the business cycle c. Stability in the exchange rate d. A falling price level to increase consumption...
-
Differentiate between government debt and the government budget balance using the concepts of stock and flow variables.
-
What is the tax wedge? If the president and Congress wanted to reduce the size of the tax wedge, what action would they take?
-
Economists believe that a central banks credibility is crucial to conduct an effective monetary policy. Briefly explain why.
-
An expansionary fiscal policy can effectively stimulate the economy, but the resulting crowding out may frustrate this result. What policy measure do you think could be taken in order to avoid...
-
Help me find specific, measurable data (statistics and numbers) related to how "Low Productivity Amongst Employees" is affecting the organization. This information should be recorded in the form of a...
-
Prove the following D,(cos x) = - sin x (Hint: Apply the identity cos(A + B) = cos A cos B sin A sin B)
-
Classifying securities. Firms that do not elect the fair value option classify marketable securities along two dimensions: Purpose of investment: debt securities held to maturity, trading...
-
Interpreting income tax disclosures. Exhibit 11.23 presents information from the income tax note to the financial statements for a computer manufacturer for the years ending December 31, 2008, 2007,...
-
Competition among acquiring firms to make a corporate acquisition may result in the successful firm paying more than the fair value of another firm. The acquiring firm will allocate the excess...
-
A stock price is governed by \[\frac{\mathrm{d} S}{S}=\mu \mathrm{d} t+\sigma \mathrm{d} z\] where \(z\) is a standardized Wiener process. Interest is constant at rate \(r\). An investor wishes to...
-
The current price of gold is \(\$ 412\) per ounce. The storage cost is \(\$ 2\) per ounce per year, payable quarterly in advance. Assuming a constant interest rate of \(9 \%\) compounded quarterly,...
-
At the beginning of April one year, the silver forward prices (in cents per troy ounce) were as follows: The carrying cost of silver is about 20 cents per ounce per year, paid at the beginning of...
Study smarter with the SolutionInn App