Question
I've double-checked the questions. Everything is there. 1) Billingsley United declared a $0.20 a share dividend on Thursday, October 16. The dividend will be paid
I've double-checked the questions. Everything is there.
1) Billingsley United declared a $0.20 a share dividend on Thursday, October 16. The dividend will be paid on Monday, November 10 to shareholders of record on Friday, October 31.
Which one of the following is the ex-dividend date?
2) Rochester, Inc. has 7,700 shares of stock outstanding at a market price of $61each and earnings per share of $2.10. The firm has decided to repurchase $61,000worth of stock.
What will the EPS be after the repurchase, all else constant? EPS: ______
3) Blasco's has a market value equal to its book value. Currently, the firm has excess cash of $1,342, other assets of $11,672, and equity of $6,985. The firm has1,270 shares of stock outstanding and net income of $850. Blasco's has decided to spend 1/4 of its excess cash on a share repurchase program. How many shares of stock will be outstanding after the stock repurchase is completed?
______shares outstanding
What will the PE ratio be after the repurchase, all else held constant? (Use the full, unrounded value for all inputs)
PE ratio: _____
4)Botanical Gardens Nursery has 6,600 shares of stock outstanding at a market price of $23 a share. The earnings per share are $1.60. The firm has total assets of $313,000. Today, the firm is paying an annual cash dividend of $0.92 a share. Ignore taxes.
How many shares will be outstanding after the dividend is paid?______shares
What should the market price be after the dividend is paid?$_____
What will the earnings per share be after the dividend is paid?______
What will the price-earnings ratio be after the dividend is paid?______
5)Flemington Farms is evaluating an extra dividend versus a share repurchase. In either case, $15,300would be spent. Current earnings are $2.60 per share, and the stock currently sells for $85 per share. There are 3,000 shares outstanding. Ignore taxes and other imperfections.
What is the current PE ratio? (without a dividend or repurchase)______
If the company pursues the repurchase:
What is the new number of shares outstanding?______
What is the new EPS?_____
What is the new PE ratio? (Use the full, unrounded value for all inputs)_____
If the company chooses the extra dividend:
What is the new price? (ignore taxes) $_____
What is the new EPS?____
What is the new PE ratio?_____
6) Alfonzo's Italian House has25,300 shares of stock outstanding with a par value of $1 per share and a market price of $22 a share. The firm just announced a 3-for-2 stock split.
What is the equity value of the company before the split?$_____
What will the market price per share be after the split?$_____
How many shares of stock will be outstanding after the split?______shares
What is the equity value of the company after the split?$______
7)The Olive Vase has 59,000shares of stock outstanding with a par value of $1 per share and a market value of $14 a share. The company just announced a 1-for-4 reverse stock split. Currently, you own 350 shares of this stock.
What is the new price per share after the reverse stock split? $_____
How many shares of this stock will you own after the reverse stock split?_____shares
What is the total value of your shares after the reverse stock split?$_____
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