Calculate bank gogo earnings per share

Assignment Help Finance Basics
Reference no: EM133119928

PT Bank GoGo Tbk. has 50 million shares of stocks outstanding. In fiscal year 2020, Bank Gogo's after-tax profits reached IDR15 billion and the firm's stock is trading at a priceearnings multiple of 40, with a stock price of IDR12,000 per share. During 2020, Bank Gogo management issues a 25% stock dividend since the pandemic crisis and bleak sales have significantly affected Bank Gogo's earnings performance.

Instruction:

a. Calculate Bank Gogo's earnings per share before and after the stock dividend.

b. Suppose an investor owns 50 board lots of Bank Gogo before the stock dividend. Use the price earnings multiple to estimate the value of the investor's holdings both before and after the dividend.

c. Comment on the results of the stock dividend for current shareholders.

Reference no: EM133119928

Questions Cloud

Describe how to value a business asset : We have practiced valuing common stock, preferred stock, bonds, and now a company. Within this context, please describe how to value a business asset.
Big data is being used a great deal now : Class, the term "Big Data" is being used a great deal now. How is it different than a data warehouse? Is it?
Reviewing portfolio of? investments : Jay is reviewing his portfolio of? investments, which include certain stocks and bonds. He has a large amount tied up in U.S. Treasury bills paying 3.2%. He is
Nondividend-paying stock : For a nondividend-paying stock, you are given the following:
Calculate bank gogo earnings per share : PT Bank GoGo Tbk. has 50 million shares of stocks outstanding. In fiscal year 2020, Bank Gogo's after-tax profits reached IDR15 billion and the firm's stock is
Discussed reinforce need for effective communication : How might the outcome be different if you used the actions described? How do the concepts discussed reinforce the need for effective communication?
Indifferent between the two forms of payment : You haye a loan Outstanding. It requires making three annual payments at the end of the next three years of $1000 each. Your bank has offered to allow you to sk
Market analysis for fictitious business : Complete market analysis for the fictitious business (ToolsCorp) going global in Taiwan
What is the rate of return on investment : Your insurance agent is trying to sell you an annuity that costs $50,000 today. By buying this annuity, your agent promises that you will receive payments of $2

Reviews

Write a Review

Finance Basics Questions & Answers

  Define cash flow accounting income

Define each of the following terms: a. Cash flow; accounting income b. Incremental cash flow; sunk cost; opportunity cost c. Net operating working capital changes; salvage value d. Real rate of return, rr, versus nominal rate of return

  Describe the legislative act

Describe the legislative act and analyze how it has influenced the U.S. health care system.

  Are there conflicts of interest in the given deal

Are there conflicts of interest in this deal? If yes, will they help or hurt the deal? Are there real potential synergies in this merger? Will this deal create value for the shareholders of Tesla?Is the deal rightly priced?

  How can inventory and accounts receivable be leveraged

How can inventory and accounts receivable be leveraged for short-term financing. And you have a large profitable job lined up two months away

  Question regarding the game of the season

What is the probability that Bryce will hit at least 1 home run during the 150th game of the season?

  Metallica bearings inc is a young start-up company no

metallica bearings inc. is a young start-up company. no dividends will be paid on the stock over the next nine years

  What is the expected commission based on making calls

A stockbroker calls on potential clients from referrals. For each call, there is a 10% chance that the client will decide to invest with the firm. Fifty-five percent of those interested are found not to be qualified, based on the brokerage firm's ..

  Obtain current prices for number of publicly traded options

Obtain current prices for a number of publicly traded options. If possible, obtain prices for several different options on the same stock, as shown in Table.

  Review case study of-the dow jones industrial average

The Dow Jones Industrial Average (DJIA) and the Standard & Poor's 500 (S&P 500) indexes are used as measures of overall movement in the stock market.

  What is the spot interest rate in percentage per annum

If the market price of a 20-year pure discount bond with a face value of $1,000 is $214.55, what is the spot interest rate for the 20-year maturity expressed in percentage per annum?

  You have 36 years left until retirement and want to retire

you have 36 years left until retirement and want to retire with 4.9 million. your salary is paid annually and you will

  What is the firm cost of preferred stock

A company's perpetual preferred stock currently sells for $92.50 per share, and it pays an $8.00 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 5.00% of the issue price. What is the firm's co..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd