Question: please show the working process included formula. thank you Question 6 GK Corporation has a net income of $2,000,000 with outstanding number of shares of
Question 6 GK Corporation has a net income of $2,000,000 with outstanding number of shares of 700,000. The current stock price of the corporation is $1.30. If the corporation provides a 20% stock dividend, determine the new stock price. (3.5 marks) (6) P2A Corporation recently paid a $1.10 dividend per share. The current stock price stands at $45. Compute the required rate of return if the dividend growth rate is 7%. (3.5 marks) Mars Corporation prefers to pay dividends of $0.20 in the first year, $0.35 in the second year, $0.40 in the third year, and $0.45 in the fourth year. The corporation expects that at the end of the fourth year, the corporation's stock price will be $18 per share. If the discount rate is 12%, calculate the current stock price of Mars Corporation. (5 marks) Explain the dividend payment process. (6 marks) (e) Describe stock repurchase and the methods of stock repurchase. (7 marks)
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