Question: can someone please answer these for me updated E. None of the above 28. A firm has a stock price of $1.20 per share and

can someone please answer these for me
can someone please answer these for me updated E. None of the
above 28. A firm has a stock price of $1.20 per share
updated
and 900,000 shares outstanding. It decides to do a 1-for-9 reverse stock
split. After the reverse split, the market price goes to SII per

E. None of the above 28. A firm has a stock price of $1.20 per share and 900,000 shares outstanding. It decides to do a 1-for-9 reverse stock split. After the reverse split, the market price goes to SII per share. How much have the stockholders gained or lost from the reverse split? A. Gained $1,100,000 B. Gained $100,000 C. Zero D. Gained $20,000 E. None of the above 29. Why do corporations sometimes split their stock? A. So investors won't have to pay extra for odd lots B. To get their stock price into a range where stockholders can buy round lots C. To avoid extra taxes on high stock prices D. To avoid drawing undue attention on their company E. None of the above 30. Why do companies like to smooth their dividend payments over time? A. To be conservative and not raise them unless they are certain they can keep paying them B. To transfer wealth from bondholders to stockholders C. To minimize volatility of their long-term assets D. To moderate the political process E. None of the above 31. Why do stock prices usually drop on a company's ex-dividend date? A. Paying a dividend is bad news B. They will no longer be able to deduct the dividend on their corporate tax return C. The company no longer owns the amount of cash paid as the dividend D. Investors wish their cash tied up for less than 2 days E. None of the above 32. Which of the following are true? A. A company's stock price usually drops when it stops repurchasing its own stock B. A company's stock price usually drops when it announces it is increasing its dividend C. A company's stock price usually drops when it announces it is eliminating its dividend D. Both A and C E. None of the above 33. Why might a company do a reverse stock split? A. Its stock price is so low it might get delisted from its exchange B. Its stock price is too low to do share repurchases C. Its stock price is too high for investors to buy round lots D. Its stock price is too high to attract attention from stock analysts E. None of the above 24 Whur E. None of the above 34. Why might a firm repurchase its own stock? A. It has a shortage of cash B. Its share price is too high C. Its EPS is too high D. It cannot compute its return on equity E. None of the above 35. Which of the following is (are) tree about dividend changes? A. Dividend changes follow changes in the Federal Reserves target rate B. Dividend changes follow shifts in long-run sustainable camings C. Management are reluctant to increase dividends if they might need to be cut later D. Both Band C E. All of the above 36. In the Miller-Modigliani world of perfect capital markets A. Dividend changes are important B. Dividend changes are imrelevant C. Interest rate swaps are profitable D. Stock options are highly profitable E. None of the above 37. Wintergrin Corporation has 54 million in cash and 400,000 shares of stock outstanding. It announcesa 10% stock dividend. What will it stockholders receive? A. $400,000 cash B. 54 million cash C 40,000 more shares of stock D. Nothing E. All of the above 38. What is the advantage for stockholders of share repurchases over dividende? A. Stockholders can defer receipt of cash dividend B. Stockholders can wait to sell their stock back to the company until it is advantageous C. Stockholders do not have to pay capital gains taxes on share repurchases D. Stockholders do not have to pay taxes on cash dividends E. All of the above 39. Honjammer Inc. paid $14 million in dividends in 2016, during that year it had $42 million in earnings and 7 million shares outstanding. What is its dividends per share? A. 90.33 B. $0.17 50.50 D. $2.00 E. None of the above 40. What happened after the tax rate on dividends was cut in 2003? A. The Astros won the World Series II. The number of new dividend initiations by US firms increased significantly C. Many firms cut their dividends D. Dividend payouts remained constant 1. None of the above 28. A firm has a stock price of $1.20 per share and 900,000 shares outstanding. It decides to do a 1-for-9 reverse stock split. After the reverse split, the market price goes to $11 per share. How much have the stockholders gained or lost from the reverse split? A. Gained $1,100,000 B. Gained $100,000 C. Zero D. Gained $20,000 E. None of the above 29. Why do corporations sometimes split their stock? A. So investors won't have to pay extra for odd lots B. To get their stock price into a range where stockholders can buy round lots C. To avoid extra taxes on high stock prices D. To avoid drawing undue attention on their company E. None of the above 30. Why do companies like to smooth their dividend payments over time? A. To be conservative and not raise them unless they are certain they can keep paying them B. To transfer wealth from bondholders to stockholders C. To minimize volatility of their long-term assets D. To moderate the political process E. None of the above 31. Why do stock prices usually drop on a company's ex-dividend date? A. Paying a dividend is bad news B. They will no longer be able to deduct the dividend on their corporate tax return C. The company no longer owns the amount of cash paid as the dividend D. Investors wish their cash tied up for less than 2 days E. None of the above 32. Which of the following are true? A. A company's stock price usually drops when it stops repurchasing its own stock B. A company's stock price usually drops when it announces it is increasing its dividend C. A company's stock price usually drops when it announces it is eliminating its dividend D. Both A and C E. None of the above 33. Why might a company do a reverse stock split? A. Its stock price is so low it might get delisted from its exchange B. Its stock price is too low to do share repurchases C. Its stock price is too high for investors to buy round lots D. Its stock price is too high to attract attention from stock analysts E. None of the above 34. Why might a firm repurchase its own stock? A. It has a shortage of cash B. Its share price is too high C. Its EPS is too high D. It cannot compute its return on equity E. None of the above 35. Which of the following is (are) true about changes? dividend A. Dividend changes follow changes in the Federal Reserve's target rate B. Dividend changes follow shifts in long-run sustainable camings C. Management are reluctant to increase dividends if they might need to be cut later D. Both B and C E. All of the above 36. In the Miller-Modigliani world of perfect capital markets A. Dividend changes are important B. Dividend changes are irrelevant C. Interest rate swaps are profitable D. Stock options are highly profitable E. None of the above 37. Wintergrin Corporation has $4 million in cash and 400,000 shares of stock outstanding. It announces a 10% stock dividend. What will its stockholders receive? A. $400,000 cash B. S4 million cash C. 40,000 more shares of stock D. Nothing E. All of the above 38. What is the advantage for stockholders of share repurchases over dividends? A. Stockholders can defer receipt of cash dividends B. Stockholders can wait to sell their stock back to the company until it is advantageous C. Stockholders do not have to pay capital gains taxes on share repurchases 8.50.17 C. $0.50 D. Stockholders do not have to pay taxes on cash dividends E. All of the above 39. Honjammer Inc. paid $14 million in dividends in 2016, during that year it had $42 million in earnings and 7 million shares outstanding. What is its dividends per share? A. 90.33 D. $2.00 E. None of the above 40. What happened after the tax rate on dividends was cut in 2003? A. The Astros won the World Series B. The number of new dividend initiations by US firms increased significantly C. Many firms cut their dividends D. Dividend payouts remained constam E. None of the above

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