Question 6 a) 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 marks) b) Leverage is a fair-weather friend. In light of this, indicate when a company should / should not use financial leverage. (2 marks) c) Why do concepts like homemade leverage and homemade dividends work only partially in the real world? (2 marks) d) If corporate taxes are less than personal taxes, which dividend policy is likely to be preferred by the shareholders? (2 mark) e) What is an ADR? (2 mark) f) Jenningston Mills has a market value equal to its book value. Currently, the firm has excess cash of $1,200, other assets of $5,800, and equity valued at $3,750. The firm has 250 shares of stock outstanding and net income of $420. What will the new earnings per share be if the firm uses 25 percent of its excess cash to complete a stock repurchase? (2 marks) Question 6 a) 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 marks) b) Leverage is a fair-weather friend. In light of this, indicate when a company should / should not use financial leverage. (2 marks) c) Why do concepts like homemade leverage and homemade dividends work only partially in the real world? (2 marks) d) If corporate taxes are less than personal taxes, which dividend policy is likely to be preferred by the shareholders? (2 mark) e) What is an ADR? (2 mark) f) Jenningston Mills has a market value equal to its book value. Currently, the firm has excess cash of $1,200, other assets of $5,800, and equity valued at $3,750. The firm has 250 shares of stock outstanding and net income of $420. What will the new earnings per share be if the firm uses 25 percent of its excess cash to complete a stock repurchase? (2 marks)