Question
The HNH Corporation will pay a constant dividend of $ 2.00 per share, per year, in perpetuity. Assume all investors pay a 20 % tax
The HNH Corporation will pay a constant dividend of $ 2.00 per share, per year, in perpetuity. Assume all investors pay a 20 % tax on dividends and that there is no capital gains tax. The cost of capital for investing in HNH stock is 12 %. a. What is the price of a share of HNH stock? b. Assume that management makes a surprise announcement that HNH will no longer pay dividends but will use the cash to repurchase stock instead. What is the price of a share of HNH stock now?
a. What is the price of a share of HNH stock? The price of a share of HNH stock is $ ????(Round to the nearest cent.)
b. Assume that management makes a surprise announcement that HNH will no longer pay dividends but will use the cash to repurchase stock instead. What is the price of a share of HNH stock now? The price of a share of HNH stock is $????(Round to the nearest cent.)
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Online Marketing For Hotels The Definitive Guide To Direct Distribution How To Get The Most Out Of Your Advertising Money And Boost Website Revenue
Authors: Jan Sammeck
1st Edition
1798527871, 978-1798527870
