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please answer House of Haddock has 5.070 shares outstanding and the stock price is $147. The company is expected to pay a dividend of $27
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House of Haddock has 5.070 shares outstanding and the stock price is $147. The company is expected to pay a dividend of $27 per share next year and thereafter the dividend is expected to grow indefinitely by 4% a year. The president, George Mullet, now makes a surprise announcement: He says that the company wili henceforth distribute half the cash in the form of dividends and the remainder will be used to repurchase stock. The repurchased stock will not be entitled to the dividend o-1. What is the total value of the company before the announcement? a-2. What is the total value of the company after the announcement? a-3. What is the value of one share? b. What is the expected streom of dividends per share for an investor who plans to retain his shares rather than sell them back to the company? Check your estimate of share value by discouning this streom of dividends per shore Complete this question by entering your answers in the tabs helow. What is the expected stream of dividends per share for an investor who plans to retain his shares rather than seli them back to the company? Check your estimate of share value by discounting this stream of dividenis per share. a-2. What is the total value of the company after the announcement? a-3. What is the value of one share? b. What is the expected stream of dividends per share for an investor who plans to retain his shares rather than sell them back to the company? Check your estimate of share value by discounting this stream of dividends per share. Complete this question by entering your answers in the tabs below. What is the expected stream of dividends per share for an investor who plans to retain his shares rather than sell them back to the company? Check your estimate of share value by discounting this stream of dividends per share: Note: Do not round intermediate calculations. Round your answers to 2 decimal places Step by Step Solution
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