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Rio Rubber Corporation follows a strict residual dividend policy. All else equal, which of the following factors would be most likely to lead to an increase in the firm's dividend per share?
A. The company increases the percentage of equity in its target capital structure.
B. The number of profitable potential projects increases.
C. Congress lowers the tax rate on capital gains. The remainder of the tax code is not changed.
D. The firm's net income increases.
E. Earnings are unchanged, but the firm issues new shares of common stock.
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Find the operating cash flow for the year for Harper Brothers, Inc. if it had sales revenue of $319,800,000, cost of goods sold of $142,200,000, sales and administrative costs of $39,900,000, depreciation expense of $66,400,000, and a tax rate of ..
Stock Y has a beta of 1.2 and an expected return of 13.7 percent. Stock Z has a beta of .8 and an expected return of 9.5 percent. If the risk-free rate is 5.3 percent and the market risk premium is 6.3 percent, the reward-to-risk ratios for stocks Y ..
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For an investor's holding period return to equal the quoted yield-to-maturity, which one of the following must be true?
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Suppose the current price is $50 per share. The stock price might go up to $80 per share or go down to $20 per share. Can you derive the payoff of purchasing an European stock PUT option with exercise price $50 for one share? Come up with a risk free..
You purchased one of Big Corp's 8%, 10-year convertible bonds at its $1,000 part value a year ago when the company's common stock was selling for $20. Similar Bonds without conversion feature returned 12% at the time. the bond is convertible into sto..
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