FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

False Dividend = 25.5-10.5=15 After tax dividend = (15/0.7)*(1-0.2)=$17.14286 Deemed capital component = 26.8 - 15 = $11.8 Capital gain/loss = 11.8 10 = 1.8

False Dividend = 25.5-10.5=15 After tax dividend = (15/0.7)*(1-0.2)=$17.14286 Deemed capital component = 26.8 - 15 = $11.8 Capital gain/loss = 11.8 10 = 1.8 After tax capital = 10.5 1.8*0.2 = 10.14 Total proceeds after tax from the buyback = (17.14286+10.14)*100 = 2728.286

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Question

152. Afunctiong(x) isconvex if the chord connectingany two points on the functions graph lies above the graph. When g(x) is differentiable, an equivalent condition is that for every x, the tangent...

Answered: 1 week ago

Question

★★★★★
Kaplan Services Company (KSC) has 60 employees, 36 of whom are assigned to Division A and 24 to Division B. KSC incurred $330,000 of fringe benefits cost during 2014. Required Determine the amount of...

Answered: 1 week ago

Question

★★★★★
Jennifer has a 6 0 - month fixed installment loan, with a monthly payment of $ 2 2 3 . 0 4 . The amount she borrowed was $ 1 1 , 0 0 0 . 0 0 at 8 . 0 % APR. A split second after making her 3 6 th...

Answered: 1 week ago

Question

★★★★★
The difference between the M&M theory Case I (no taxes no bankruptcy costs) and M&M Case II (taxes no bankruptcy costs) is The relationship between cost of equity and leverage linear in Case I and...

Answered: 1 week ago

Question

★★★★★
Title something descriptive, like "Robin covers Maintenance and Supply Chain Management." Analyze Operations Management decisions. 1. Location Strategy; 2. Scheduling...

Answered: 1 week ago

Question

★★★★★
Watch https://www.youtube.com/watch?v=coSyGQI28eM&t=77s and answer the following question: What are the 3 main types of private insurance plans? Watch Define the following terms (cite any web...

Answered: 1 week ago

Question

★★★★★
5. from the following data, obtain Y as a linear function of x using the 199 method of least squares. Then plot the corresponding relationship and the mis data points. C. 16 fignal is cut 200 Intuin...

Answered: 1 week ago

Question

★★★★★
Corporate Governance FOR NETFLIX: Corporate governance pursues integrative approaches to systems of governance, which controls how the organizations operates internally and externally. It uses...

Answered: 1 week ago

Question

★★★★★
Plot the 3D Mohr's circle for the stress state where n=0 and determine the principal stresses , graphically or otherwise. Plot the 3D Mohr's circle for the stress state where n=2 and determine the...

Answered: 1 week ago

Previous Question Next Question