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Are you available for the following question, its requiring dividend formulations and payout policy. Homework Help Question 1 RRM Incorporated has just declared a dividend

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Are you available for the following question, its requiring dividend formulations and payout policy.

image text in transcribed Homework Help Question 1 RRM Incorporated has just declared a dividend of $10.25 per share. The tax rate of dividends is 20 percent. The tax rate on capital gains is zero. The tax laws require the taxes to be withheld when the dividend is paid. RRM currently sells for $107 per share and the stock is about to go ex-dividend. What do you calculate the ex-dividend price w Question 2 The frm you are CEO if has a current period cash fow of 2.1 million and pays no dividend. The present value of the company's future cash fows is $17.5 million. The company is entrely fnanced with equity and there are 500,000 shares outstanding. Assume the dividend tax rate is zero. What is the share price of your frm? Suppose you and the board announce a plan to pay out 50 percent of the current cash fows as a dividend to its shareholders. How can a shareholder, who owns 1000 shares, achieve a zero pay-out policy on their own? 20 percent. dend is paid. lculate the ex-dividend price will be? nanced with equity re price of your frm? dividend to its shareholders

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