Question: Yellow Corp. is evaluating an extra dividend versus a share repurchase. In elther case, $6,000 would be spent. Current earnings are $0.93 per share and


Yellow Corp. is evaluating an extra dividend versus a share repurchase. In elther case, $6,000 would be spent. Current earnings are $0.93 per share and the stock currently sells for $39 per share. There are 2,100 shares outstanding. Ignore taxes and other imperfections. If Yellow Corp, pays a dividend, what will be the dividend per share? After the dividend is pald, how many shares will be outstanding and what will the price per share be? Enter your answers rounded to 2 DECIMAL PLACES. NOTE: Fractional shares are possible (Ex. 0.59 shares) Dividend = Correct response: 2.860.01 Shares outstanding = correct response: 2,100 Stock price = correct response: 36.14.01 Click "Verify" to proceed to the next part of the question. After the \$2.86 dividend, the price falls to $36.14 per share. What are eamings per share (EPS) and the price eamings (P/E) ratio? Enter your answers rounded to 2 DECIMAL PLACES. EPS= Correct response: 0.93 PIE Ratio = correct response: 38.860.1 Click "Verify" to proceed to the next part of the question. If Yellow Corp. goes with the share repurchase, how many shares will they buy? After the repurchase, how many shares will be outstanding and what will the price per share be? Enter your answers rounded to 2 DECIMAL PLACES. Shares repurchased = Shares outstanding = Stock price = Click "Verify" to proceed to the next part of the
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
