Question
Revenues 4300 Gross Profit 1200 Operating Income 750 Interest expenses 50 Taxes 175 Total Assets 2500 Current Liabilities 500 Long term debt 1000 Common stock
Revenues 4300
Gross Profit 1200
Operating Income 750
Interest expenses 50
Taxes 175
Total Assets 2500
Current Liabilities 500
Long term debt 1000
Common stock 500
Retained Earnings 350
Net income 2021 150
The company has 500 thousand shares outstanding at a par value of 1000.
The market value of the shares today is 7500
Mr Andersen, who has 10% of the shares is proposing to make a dividend payment in cash for 30 Million
Mrs Bettermore, the CEO, holding 1% of the shares is proposing to make a stock dividend with a value of 30 Million.
you also want to prepare your own proposal buying the company shares for a total amount of 30 Millions.
Calculate number of shares, EPS, PE ratio, Return on sales, ROE, ROA before doing anything, and also after each of the 3 alternatives.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started