Question 24 (1 point)

The following information is provided to you: - Net profit after tax: $ 1,500,000; - Number of ordinary shares in circulation: 400,000; Share price on the stock market: $ 50 and Dividend per share: $ 2.5. If the company repurchases 100,000 of its common stock, calculate the earnings per share after the repurchase, all other things being equal.

Options for question 24:

$ 6.50

$ 4.00

$ 5.00

$ 4.50

$ 3.75

Question 25 (0.5 points)

I buy a stock option on December 11, 2021 for a 3-month term. The agreed exercise price is $ 40 per share. If on March 11, 2022, the share price in the market is $ 50 per share, then:

Options for question 25:

I have no interest in exercising my Call

I have an interest in exercising my Call.

Question 26 (0.5 points)

The dividend policy determines the part of the company's profits that is not reinvested and that distributed as dividends to preferred shareholders.

Options for question 26:

True

False