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Olivantlers Magical Headgear is currently carrying $1 million in extra cash on its balance sheet. The company would like to distribute the cash back to
Olivantlers Magical Headgear is currently carrying $1 million in extra cash on its balance sheet. The company would like to distribute the cash back to the investors with a share buyback. The firm plans on buying back 10% of all shares at $28.57 per share. The stock buyback will result in $4.76 Earnings per Share (EPS) which will also be distributed to investors as 100% dividend. If an investor owns 250 share before the buyback, what will her dividend income and capital gains be after the buyback? $1,071.00; $714.25 $5,832.94; $990.00 $3,190.90; $1,050.00 $4,307.85; $681.09 $2,611.00;$400.00
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