Yan Ltd. Has extra cash of US400,000. Its equity is currently valued at US7,000,000. The number of outstanding shares is 2,000,000. What will be the ex-dividend price if Yan Ltd. Decides to pay the entire extra cash as cash dividend?
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Yan Ltd. Has extra cash of US400,000. Its equity is currently valued at US7,000,000. The number of outstanding shares is 2,000,000. What will be the ex-dividend price if Yan Ltd. Decides to pay the entire extra cash as cash dividend?
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- The present value of JECK Co.'s expected free cash flow is $101 million. If JECK has $30 million in debt, $4 million in cash, and 2.8 million shares outstanding, what is its share price? The company's share price is $ (Round to the nearest cent.)Yan Ltd. Has extra cash of US400,000. Its equity is currently valued at US7,000,000. The number of outstanding shares is 2,000,000. What will be the ex-dividend price if Yan Ltd. Decides to pay the entire extra cash as cash dividend? Select one: a. US$0.10 per share b. US$0.50 per share c. US$4.90 per share d. US$3.30 per shareBlue Corp. is evaluating an extra dividend versus a share repurchase. In either case, $5,500 would be spent. Current earnings are $1.11 per share and the stock currently sells for $42 per share. There are 2,500 shares outstanding. Ignore taxes and other imperfections. If Blue 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. 0.49 shares) Dividend 2.2 ☑ Correct response: 2.2±0.01 Shares outstanding = 2500 Correct response: 2,500 Stock price = 39.8 Correct response: 39.8±0.01 Click "Verify" to proceed to the next part of the question. After the $2.2 dividend, the price falls to $39.8 per share. What are earnings per share (EPS) and the price earnings (P/E) ratio? Enter your answers rounded to 2 DECIMAL PLACES. EPS = Number P/E RatioNumber Click "Verify" to proceed to the next part of the…
- (b) Nik Syak Dental Berhad has net income of RM3,000,000 and it has 2,000,000 outstanding common shares. The company's share currently trades at RM45 a share. Nik Syak is considering a plan where it will use available cash to repurchase 30 percent of its shares in the open market. The repurchase is expected to have no effect on either net income or the company's P/E ratio. Calculate the firm's new share price.The present value of JECK Co.’s expected free cash flows is $100 million. If JECK has $30 million in debt, $6 million in cash, and 2 million shares outstanding, what is its share price?Plato Corporation’s board announces to pay $2 million excess cash to shareholders. At the announcement, the firm has no debt and 1 million shares outstanding with the market value of equity of $12 million. Assume that the markets are perfect. (i) What is the cum-dividend price? (ii) If the firm distributes the excess cash as a cash dividend, what is the exdividend price? Is the drop in share price the same as the cash dividend per share? Why? (iii) If the firm distributes the excess cash as a share repurchase, what will its share price once the shares are repurchased? (iv) If you hold 1,000 shares and the firm distributes the excess cash as a share repurchase in part (iii). How do you use homemade dividend to receive a cash dividend as in part (ii)?
- You own all the equity of R.G.C. I Ltd. The company has no debt. The company’s annual cash flow is GH¢900,000 before interest and taxes. The company tax rate is 35%. You have the option to exchange 1/2 of your equity position for 5% bonds with a face value of GH¢2,000,000. What is the total cash flow to the investors? What is the value of the unlevered firm? What is the value of the levered firm? Assuming a bankruptcy cost of GH¢8000, what is the value of the levered firm after considering bankruptcy cost?Suppose IWT has decided to distribute $50 million, which it presently is holding in liquid short-term investments. IWT’s value of operations is estimated to be about $1,937.5 million; it has $387.5 million in debt and zero preferred stock. As mentioned previously, IWT has 100 million shares of stock outstanding. Assume that IWT has not yet made the distribution. What is IWT’s intrinsic value of equity? What is its intrinsic stock price per share? Now suppose that IWT has just made the $50 million distribution in the form of dividends. What is IWT’s intrinsic value of equity? What is its intrinsic stock price per share? Suppose instead that IWT has just made the $50 million distribution in the form of a stock repurchase. Now what is IWT’s intrinsic value of equity? How many shares did IWT repurchase? How many shares remained outstanding after the repurchase? What is its intrinsic stock price per share after the repurchase?LL corporation has $500M of excess cash. The firm has no debt and 1K shares outstanding with a current market price of $20 per share. LL’s board has decided to pay out this cash as a one time dividend. What is the ex-dividend price of a share in a perfect capital market?
- Corleone Collieries is deciding whether to pay out R60 000 in excess cash in the form of an extra dividend or a share repurchase. Current profits are R3,00 per share and the share sells for R30. Their abbreviated balance sheet before paying out the dividend is: Equity 240 000 Bank/cash 60 000 Debt 60 000 other assets 240 000 300 000 300 000 Evaluate each alternative (i.e.: pay the dividend or repurchase the shares) by: 1.1. Calculating the number of shares in issue. 1.2. The dividends per share (for the first alternative, i.e. pay the dividend) 1.3. Calculate: 1.3.1. The new share price. 1.3.2. The EPS 1.3.3. The price-earnings ratioDamai Bhd’s expected earnings after taxes (EAT) is RM300 million. The currentmarket price of its common stock is RM5.00 per share. At present the companyhas 500 million shares outstanding and a PE ratio of 10.i. Calculate the intrinsic value of Damai Bhd’s common stock.ii. Would you buy the share at its current price? Why?Senten Ltd is deciding whether to pay out R60000 in excess cash in the form of an extra dividend or a share repurchase. Current profits are R 3.00 per share and the share sells for R 30. Their abbreviated balance sheet before paying out dividend is : R. Equity 240 000 Bank/cash 60000 Debt. 60000. Other assets 240 000 Total 300 000. 300 000 Evaluate each alternative (i.e pay the dividend or repurchase the shares) by calculating3.2.1 the number of shares in issue(5)3.2.2 the dividends per share (for the first alternative i.e pay the dividends. (5)3.2.3 calculate3.2.3.1 the new share price3.2.3.2 the Earnings per share Equity