Fundamentals Of Financial Management
14th Edition
ISBN: 9781305629080
Author: Eugene F. Brigham, Joel F. Houston
Publisher: South-western College Pub (edition 14)
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Question
Chapter 21, Problem 7SP
a.
Summary Introduction
To Determine: The maximum share price.
Introduction: A merger is the mix of two organizations into one by either shutting the old entities into one new entity or by one organization engrossing the other. In other terms, at least two organizations are united into one organization to form a merger.
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Assuming yourself to be Anna, narrate what you would have read in the file. Your narrative should include answers to the following:
Note: 1 Retention ratio = 1 – Dividend payout ratio
a) What is the current Dividend per share (DPS) for Chatterbox Inc., assuming a 100% dividend payout policy?
Refer to Figure 2.8 and look at the listing for Hewlett Packard.
Required:
a. How many shares can you buy for $25,000?
Note: Round down your answer to the nearest whole number.
b. What would be your annual dividend income from those shares?
Note: Round down your intermediate calculations to the nearest whole number. Do not leave the cell blank. Enter zero (0) if
required. Round your answer to 2 decimal places.
c.
What must be Hewlett Packard's earnings per share?
Note: Round your answer to 2 decimal places.
d.
What was the firm's closing price on the day before the listing?
Note: Round your answer to 2 decimal places.
a. Number of shares
b. Annual dividend income
c. Earnings per share
d. Yesterday's closing price
NAME
Herbalife
Nutrition
SYMBOL CLOSE
HLF
Hershey
HSY
Hess Corporation HES
Hewlett Packard
HPE
HD
HMC
HON
Home Depot
Honda
Honneywell
CHANGE
0051.45 -0.05
1.64
-3.52
0.25
2.17
0.13
3.69
177.57
80.39
14.01
319.22
32.54
227.22
VOLUME
0000434,355
658,253
2,143,509
9,448,992…
This is a complete question & solution is also attached just explain the calculations or rework it . Thanks
Question :
ABC Inc in considering a right offer . The company has considered that the Ex-right price would be the $52 . The current price is $55 per share & there are 5 Million shares outstanding .The right offer would raise a total of $60 Million .What is the subscription price?
Solution :
Attached Below
Chapter 21 Solutions
Fundamentals Of Financial Management
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