Question: .- The Linnen company is thinking about which decision to take: Alternative a, pay a dividend, and alternative b, repurchase debt. The amount will be

.- The Linnen company is thinking about which decision to take:

Alternative a, pay a dividend,

and alternative b, repurchase debt. The amount will be 5.000.

There are 1.000 shares outstanding

The EPS are 3 per share

The P/E ratio is 20 Under the two alternatives find the new EPS, PE and price per share.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

The two sides of a V-shaped water trough are hinged to each other at the bottom where they meet, as shown in Fig. P11??25, making an angle of 45? with the ground from both sides. Each side is 0.75 m...

Q:

.- The Linnen company is thinking about which decision to take: Alternative a, pay a dividend, and alternative b, repurchase debt. The amount will be 5.000. There are 1.000 shares outstanding The EPS...

Q:

The Linnen company is thinking about which decision to take: Alternative a, pay a dividend, and alternative b, repurchase debt. The amount will be 5.000. There are 1.000 shares outstanding The EPS...

Q:

5.- The Linnen company is thinking about which decision to take: Alternative a, pay a dividend, and alternative b, repurchase debt. The amount will be 5.000. There are 1.000 shares outstanding The...

Q:

Please slove on excel: The Linnen company is thinking about which decision to take: Alternative a, pay a dividend, and alternative b, repurchase debt. The amount will be 5.000. There are 1.000 shares...

Q:

5. The Linnen company is thinking about which decision to take: Alternative a, pay a dividend, and alternative b, repurchase debt. The amount will be 5.000. There are 1.000 shares outstanding The EPS...

Q:

QUESTION ONE [25] The following balances/data was extracted from the accounting records of Benta Ltd on 28 February 2020, the end of their financial year: R Share capital (900 000 shares at R2 par...

Q:

a) (10 marks) You own 100 sh that will pay 5$ in one yr and 15$ in 2yrs. Calculate the current value of your shares if the discount rate is 12% pa. You would prefer equal dividends in both years....

Q:

QUESTION 4 (25) Nexcare (Ltd) operate a number of car washes and auto valet services. The company has experienced a reasonable trading year. They are deciding whether to pay out R248 000 in...

Q:

1. From the scenario, cite your forecasting conclusions that support TFC?s decision to expand to the West Coast market. Speculate as to whether or not the agency conflict discussed in the scenario...

Q:

i am taking Cooperate finance which is FIN222 can help me to answer.. ? Tutorial 1 Topic 1 Chapter 1 4. What are the main advantages and disadvantages of organising a firm as a corporation? 6. You...

Q:

If you were chairperson of the Federal Reserve, what economic figures might you use to determine how well you were doing What role did Ben Bernanke, the previous head of the Fed, play in the recent...

Q:

After the accounts are closed on July 3, 2010, prior to liquidating the partnership, the capital accounts of Whitney Lacy, Eli Oliver, and Alberto Diaz are $28,200, $7,800, and $37,200, respectively....

Q:

In the context of SERVQUAL, _ _ _ _ _ is the knowledge and courtesy of service providers and their ability to convey trust and confidence. Group of answer choices responsiveness reliability competence

Q:

Argue that after executing RB-DELETE-FIXUP, the root of the tree must be black.

Q:

Ergonomic Supply Inc., a wholesaler of office products, was organized on July 1 of the current year, with an authorization of 80,000 shares of preferred 2% stock, $70 par, and 900,000 shares of $11...

Q:

Find the average power absorbed by the network shown in Figure P 9.3 2230o A Figure P 9.3

Q:

Show that for any function f : N R + , where f(n) n, the space complexity class SPACE(f(n)) is the same whether you define the class by using the singletape TM model or the two-tape read only input...

Q:

Find the transfer function, G(s) = X 2 (s)/F(s), for the translational mechanical network shown in Figure P2.10. X(1) X(1) 1 N/m ft) 1 kg 1 N-s/m 1 kg Frictionless" FIGURE P2.10

Q:

Mediation is always binding, meaning a mediator always will decide the case ( declare a winner and a loser ) for the parties, even if they cannot come to an agreement. Mediation is always binding,...

Q:

Explain how HR serves as a strategic business partner.

Q:

Describe a social audit.

Q:

Describe ethics training.