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Finance exercises problems. attached is a word page with 2 problems. Can you please explain step by step how to solve these problems. 1. Mr.

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Finance exercises problems. attached is a word page with 2 problems.

image text in transcribed Can you please explain step by step how to solve these problems. 1. Mr. R. owns 20,000 shares of ABC Corporation stock. The company is planning to issue a stock dividend. Before the dividend Mr. R. owned 10 percent of the outstanding stock, which had a market value of $200,000, or $10 per share. Upon receiving the 10 percent stock dividend the value of his shares is. Can you please explain step by step how to solve this problem. a. $220,000. b. $210,000. c. $200,000. d. $180,000. 2. A firm has had the following earnings history over the last five years: Year 2015 2014 2013 2012 2011 Earnings per Share $2.50 2.00 1.75 1.25 -1.00 If the firm's dividend policy is based on a $0.50 payout per share, increasing by $0.05 per share whenever earnings exceed $1.50 per share, the annual dividends for 2015 and 2014 were Can you please explain step by step how to solve this problem (a) (b) (c) (d) $1.25 and $2.50, respectively. $0.50 and $0.50, respectively. $0 and $0.50, respectively. $0.50 and $0.55, respectively

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