#1 A company has declared a dividend of $6.15 per share on its stock. Capital gains are not taxed. Suppose the IRS has issued a new regulation that requires taxes of 15 percent be withheld at the time the dividend is paid. The stock currently sells for $92.35 per share. What will the ex-dividend price be? a) $86.20 b) $89.28 c) $92.35 d) $87.12 e) $91.43

#2 Robinson's has 40,000 shares of stock outstanding with a par value of $1 per share and a market price of $40 a share. The balance sheet shows $40,000 in the common stock account, $485,000 in the paid in surplus account, and $470,000 in the retained earnings account. The firm just announced a 2-for-1 stock split. How many shares of stock will be outstanding after the split? a) 80,000 shares b) 20,000 shares c) 79,500 shares d) 40,000 shares e) 60,000 shares

#3 Bo's Home Manufacturing has 490,000 shares outstanding that sell for $48.70 per share. The company has announced that it will repurchase $69,000 of its stock. What will the share price be after the repurchase? a) $48.56 b) $48.84 c) $48.70 d) $45.67 e) $42.49

#4 LTE stock sells for $28.95 per share and there are 490,000 shares outstanding. The company plans a 4-for-1 reverse split. Assuming no market imperfections or tax effects, what will the stock price be after the split? a) $86.85 b) $7.24 c) $115.80 d) $102.93 e) $9.65