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Hi, I need to solve this in excel but I am unsure how to proceed. If you could use values instead of cell references it
Hi, I need to solve this in excel but I am unsure how to proceed. If you could use values instead of cell references it would be much appreciated so I can learn the process and explanation.
| Question 7: | |||
| A company is planning to pay dividends stated below. The number of shares outstanding and the earnings per share are mentioned too. The price at which the stock should sell after the ex-dividend date is also given. If, instead of paying a dividend, the firm decides to repurchase stock, answer the following questions. | |||
| Dividends - Total ($s) | 230 000 | ||
| EPS ($s) | 3,26 | ||
| Number of Shares | 155 000 | ||
| Price after Ex-Div. Date ($s) | 63,60 | ||
| a. What should be the repurchase price? | |||
| b. How many shares should be repurchased? | |||
| c. What if the repurchase price is set below or above your suggested price in part (a)? Set a numerical example of how this would make a difference to the shareholders. | |||
| d. If you own 100 shares, would you prefer that the company pay the dividend or repurchase stock? | |||
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