Question: hi tutorcan you help me this question abcd .......................................................................... The stock of Dividend Inc. will go ex-dividend tomorrow. The dividend will be $0.50 per share
hi tutorcan you help me this question abcd
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The stock of Dividend Inc. will go ex-dividend tomorrow. The dividend will be $0.50 per share and there are 20,000 shares of stock outstanding. The market value balance sheet for Dividend Inc. is shown below. Assets Liabilities and Equity Cash $100,000 Equity $1,000,000 Fixed assets 900,000 a. What price is Dividend Inc. stock selling for today? b. Ignoring taxes, what price will it sell for tomorrow? Now suppose that Dividend Inc. announces its intentions to repurchase $10,000 worth of stock instead of paying out the dividend. c. What effect will the repurchase have on an investor who currently holds 100 shares and sells one of those shares back to the company in the repurchase? d. Compare the effects of the repurchase to the effects of the cash dividend above.The stock of Dividend Inc. will go ex-dividend tomorrow. The dividend will be $0.50 per share and there are 20,000 shares of stock outstanding. The market value balance sheet for Dividend Inc. is shown below. Assets Liabilities and Equity Cash $100,000 Equity $1,000,000 Fixed assets 900,000 a. What price is Dividend Inc. stock selling for today? b. Ignoring taxes, what price will it sell for tomorrow? Now suppose that Dividend Inc. announces its intentions to repurchase $10,000 worth of stock instead of paying out the dividend. c. What effect will the repurchase have on an investor who currently holds 100 shares and sells one of those shares back to the company in the repurchase? d. Compare the effects of the repurchase to the effects of the cash dividend above
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