Question: Fin201/please answer without copping to avoid plagirism Answer the following questions: Q1. What are the different ways available for the corporations to distribute income among
Fin201/please answer without copping to avoid plagirism
Answer the following questions:
Q1. What are the different ways available for the corporations to distribute income among the shareholders? Suppose a firm promises to pay dividends of $200,000 every year in perpetuity with 200,000 shares outstanding. Assume a discount rate of 11.1%. What is the present value of one of the firms shares? (2 marks)
Q2. What is Stock repurchase? Explain the four ways to implement stock repurchase.
(3 marks)
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