ustomers. The fir 217000 . The firm's shareholders Related to Check Divid ence of the wing of cash didenda) The Crydoma s gardering weeds and produc t mandam valable for d in sch w a nd plans to its business the end of one which time will be prepared to pay a ting dividend of 133 require a 9.9 perceno rum for investing in the financem What do you the r e by a 7.000 vided today and plans to pay a 31.33 lion tin dided the end of the year? b. Caraway's board of Grector de topy 01.000 vided by warha ng an g saling news of common for the 10.000 be the value of the war of ock? There are? The value of Carway's equity today pays out 217.000 ch udend today and plans to pay a $1.39 million dating dividend at the end of the years found to the nearest de de to make the cash dividend, what wil Homework: Chapter 16 Homework Save 7 of 7 (7 complete) HW Score: 85.71%, 6 of 7 pts Score: 0 of 1 pt X P16-12 (similar to) Question Help (Related to Checkpoint 16.1) (Dividend irrelevance of the timing of cash dividends) The Caraway Seed Company sells specialty gardening seeds and products primarily to mail-order and Internet customers. The firm has $217,000 available for distribution as a cash dividend immediately and plans to shut down its business at the end of one year, at which time it will be prepared to pay a liquidating dividend of $1,33 million to the firm's stockholders. The firm's shareholders require a 9.9 percent rate of return for investing in the all-equity-financed firm. a. What do you estimate the value of Caraway's equity to be today if it pays out a $217,000 cash dividend today and plans to pay a $1.33 million liquidating dividend at the end of the year? b. If Caraway's board of directors decides to pay a $618,000 dividend today to its existing shareholders using an equity offering selling new shares of common stock to raise the additional $401,000 it needs to make the cash dividend, what will be the value of the existing shares of stock? The new shares? a. The value of Caraway's equity today if it pays out a $217,000 cash dividend today and plans to pay a $1,33 million liquidating dividend at the end of the year is $ (Round to the nearest dollar) ustomers. The fir 217000 . The firm's shareholders Related to Check Divid ence of the wing of cash didenda) The Crydoma s gardering weeds and produc t mandam valable for d in sch w a nd plans to its business the end of one which time will be prepared to pay a ting dividend of 133 require a 9.9 perceno rum for investing in the financem What do you the r e by a 7.000 vided today and plans to pay a 31.33 lion tin dided the end of the year? b. Caraway's board of Grector de topy 01.000 vided by warha ng an g saling news of common for the 10.000 be the value of the war of ock? There are? The value of Carway's equity today pays out 217.000 ch udend today and plans to pay a $1.39 million dating dividend at the end of the years found to the nearest de de to make the cash dividend, what wil Homework: Chapter 16 Homework Save 7 of 7 (7 complete) HW Score: 85.71%, 6 of 7 pts Score: 0 of 1 pt X P16-12 (similar to) Question Help (Related to Checkpoint 16.1) (Dividend irrelevance of the timing of cash dividends) The Caraway Seed Company sells specialty gardening seeds and products primarily to mail-order and Internet customers. The firm has $217,000 available for distribution as a cash dividend immediately and plans to shut down its business at the end of one year, at which time it will be prepared to pay a liquidating dividend of $1,33 million to the firm's stockholders. The firm's shareholders require a 9.9 percent rate of return for investing in the all-equity-financed firm. a. What do you estimate the value of Caraway's equity to be today if it pays out a $217,000 cash dividend today and plans to pay a $1.33 million liquidating dividend at the end of the year? b. If Caraway's board of directors decides to pay a $618,000 dividend today to its existing shareholders using an equity offering selling new shares of common stock to raise the additional $401,000 it needs to make the cash dividend, what will be the value of the existing shares of stock? The new shares? a. The value of Caraway's equity today if it pays out a $217,000 cash dividend today and plans to pay a $1,33 million liquidating dividend at the end of the year is $ (Round to the nearest dollar)
