Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Yellow Corp. is evaluating an extra dividend versus a share repurchase. In either case, $5,000 would be spent. Current earnings are $1.01 per share and

Yellow Corp. is evaluating an extra dividend versus a share repurchase. In either case, $5,000 would be spent. Current earnings are $1.01 per share and the stock currently sells for $37 per share. There are 1,600 shares outstanding. Ignore taxes and other imperfections.

If Yellow Corp. pays a dividend, what will be the dividend per share? After the dividend is paid, how many shares will be outstanding and what will the price per share be? Enter your answers rounded to 2 DECIMAL PLACES.

NOTE: Fractional shares are possible (Ex. 0.86 shares)

Dividend =

Shares outstanding =

Stock price =

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

i need 8 4 7 . .

Answered: 1 week ago