The board of directors of Four Seasons Total Landscaping is dissatisfied with the current dividend policy and proposes that a $1, 242, 600 dividend be paid one year from today (i.e. at t=1). To raise the extra cash needed necessary for the increased dividend, the company will sell new shares at t=1 in order to immediately pay out the proceeds to the existing shareholders as the board of directors' desired dividend. B) How much extra funding does Four Seasons Total Landscaping need to raise at t=1 through the new share sale in order to have enough funds to pay the increased dividend to the existing investors? The firm needs to raise $ extra. (Round to 2 decimal places. Use the unrounded value in any future calculations that need it) C) What must be the total value at t=1 of both the existing shares and the newly issued shares together? It may be helpful to remember that, at that time, the only remaining cash flow will be the final liquidating t=2 cash flow of one year later. The value of both the existing and new shares must together be worth $ at t=1. (Round to 2 decimal places. Use the unrounded value in any future calculations that need it) D) How many new shares must be sold at t=1 to new investors to raise the required funds needed for this increased dividend at t=1 paid to existing investors? The firm must issue new shares at t=1 in order to raise the extra funding. (Round to 2 decimal places. You may assume that fractional shares are possible. Use the unrounded value in any future calculations that need it) E) What price per share do those new investors pay for their new shares at t=1? The investors must pay $ for each of the new shares. (Round to 2 decimal places. Use the unrounded value in any future calculations that need it) The board of directors of Four Seasons Total Landscaping is dissatisfied with the current dividend policy and proposes that a $1, 242, 600 dividend be paid one year from today (i.e. at t=1). To raise the extra cash needed necessary for the increased dividend, the company will sell new shares at t=1 in order to immediately pay out the proceeds to the existing shareholders as the board of directors' desired dividend. B) How much extra funding does Four Seasons Total Landscaping need to raise at t=1 through the new share sale in order to have enough funds to pay the increased dividend to the existing investors? The firm needs to raise $ extra. (Round to 2 decimal places. Use the unrounded value in any future calculations that need it) C) What must be the total value at t=1 of both the existing shares and the newly issued shares together? It may be helpful to remember that, at that time, the only remaining cash flow will be the final liquidating t=2 cash flow of one year later. The value of both the existing and new shares must together be worth $ at t=1. (Round to 2 decimal places. Use the unrounded value in any future calculations that need it) D) How many new shares must be sold at t=1 to new investors to raise the required funds needed for this increased dividend at t=1 paid to existing investors? The firm must issue new shares at t=1 in order to raise the extra funding. (Round to 2 decimal places. You may assume that fractional shares are possible. Use the unrounded value in any future calculations that need it) E) What price per share do those new investors pay for their new shares at t=1? The investors must pay $ for each of the new shares. (Round to 2 decimal places. Use the unrounded value in any future calculations that need it)
