Problem 13-4 Unlevered beta

Harley Motors has $18 million in assets, which were financed with $10.8 million of debt and $7.2 million in equity. Harley's beta is currently 1.4 and its tax rate is 40%. Use the Hamada equation to find Harley's unlevered beta, bU. Round your answer to two decimal places.

Problem 14-4 Stock split

After a 3-for-1 stock split, Strasburg Company paid a dividend of $1.65 per new share, which represents a 11% increase over last year's pre-split dividend. What was last year's dividend per share? Round your answer to the nearest cent.

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Problem 14-1 Residual dividend model

Axel Telecommunications has a target capital structure that consists of 65% debt and 35% equity. The company anticipates that its capital budget for the upcoming year will be $4,000,000. If Axel reports net income of $2,400,000 and it follows a residual dividend payout policy, what will be its dividend payout ratio? Round your answer to two decimal places.

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Problem 14-2 Stock split

Gamma Medical's stock trades at $145 a share. The company is contemplating a 3-for-1 stock split. Assuming that the stock split will have no effect on the market value of its equity, what will be the company's stock price following the stock split? Round your answer to the nearest cent.

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Problem 14-3 Stock repurchases

Beta Industries has net income of $2,100,000, and it has 1,440,000 shares of common stock outstanding. The company's stock currently trades at $63 a share. Beta is considering a plan in which it will use available cash to repurchase 25% of its shares in the open market. The repurchase is expected to have no effect on net income or the company's P/E ratio. What will be its stock price following the stock repurchase? Round your answer to two decimal places.

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