Question: Below is the balance sheet in market value term for CumiCiki Corporation. There are 8,000 shares of stock outstanding. The company has declared a dividend

Below is the balance sheet in market value term for CumiCiki Corporation. There are 8,000 shares of stock outstanding. The company has declared a dividend of RM1.30 per share. The stock goes ex dividend tomorrow. Ignoring any tax effects. i. Calculate the stock selling for today. ii. Calculate the stock selling tomorrow. iii. CumiCiki Corporation has announced it is going to repurchase RM10,400 worth of stock. Calculate the shares outstanding. iv. Calculate price per share after the repurchase v. Explain how share repurchase and cash dividend is effectively the same?

Cash Fixed Aset Total Market Value Balance Sheet RM 38,500 270.000 Equity RM 308.500 Total RM308.500 RM308.500

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