Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. 2. 3. 4 5. 6. 7. Shares in Growth Corporation are selling for $55 per share. There are 6 million shares outstanding. The company

1.

image text in transcribed

2.

image text in transcribed

3.

image text in transcribed

4

image text in transcribed

5.

image text in transcribed

6.

image text in transcribed

7.

image text in transcribed

Shares in Growth Corporation are selling for $55 per share. There are 6 million shares outstanding. The company repurchases 200,000 shares. After the repurchase: How many shares will be outstanding? What will be the price per share? Outstanding shares = 3 Price per share = Dungeoness Corporation has excess cash of $1,700 that it would like to distribute to shareholders as an extra dividend. Current earnings are $0.90 per share, and the stock currently sells for $40 per share. There are 300 shares outstanding. Ignore taxes and other imperfections. If Dungeoness Corp. pays a cash dividend, what will be the dividend per share? After the dividend is paid, what will the price per share be? What are earnings per share (EPS) and the price earnings (P/E) ratio? Enter your answers rounded to 2 DECIMAL PLACES. Dividend per share= 3 Price per share = Earnings per share (EPS) = Price earnings (P/E) ratio= Blue Corp. is evaluating an extra dividend versus a share repurchase. In either case, $5,500 would be spent. Current earnings are $1.16 per share and the stock currently sells for $44 per share. There are 1,500 shares outstanding. Ignore taxes and other imperfections. If Blue Corp. pays a dividend, what will be the dividend per share? After the dividend is paid, 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. 0.3 shares) Dividend = Shares outstanding = V Stock price = Suppose you plan to save $9,000 at the end of each coming year for the next 31 years from now for retirement. The interest rate is 10%. How much will you have 31 years from now? Enter your response below. What is the effective annual rate if the annual percentage rate is 8% compounded quarterly? Enter your answer as a percentage rounded to two decimal places. Do not include the percentage sign in your answer. Enter your answer below. % Suppose you will need $71,000 in 19 years. If your bank compounds interest at an annual rate of 7%, how much will you need to deposit into your account 4 year(s) from now to reach your goal? Enter your answer rounded to two decimal places. Suppose you have $21,800 today. You would like to be able to buy a car that will cost $42,300 in 10 years. What annually compounded interest rate would you need to earn in order to be able to buy the car? Enter your answer as a percentage rounded 2 decimal places. Do not enter the % sign

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions