Reference no: EM131905233
1) It has been shown that in the absence of taxes and other market imperfections firm value will be unaffected by dividend policy. Explain the logic behind this conclusion. Next, describe three real-world factors that may cause one dividend policy to be preferable to another.
2) A firm has a market value equal to its book value. Currently, the firm has excess cash of $1,000 and other assets of $6,000. Equity is worth $18,000.
The firm has 700 shares of stock outstanding and net income of $1,200. What will the new earnings per share be if the firm uses its excess cash to complete a stock repurchase?
3) On June 9th, you purchased 3,000 shares of SP stock. On July 5th, you sold 400 shares of this stock for $21 a share. You sold an additional 400 shares on July 18th at a price of $22.50 a share.
The company declared a $.30 per share dividend on June 20th to holders of record as of July 10th. This dividend is payable on July 31st. How much dividend income will you receive on July 31st as a result of your ownership of SP stock?
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What priniciple of value best describes this situation
: Seller smith purchased a lot for $150,000 and spent an additional $400,000 on the consrtuction of a new home.
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Identify the method for validating that policy is followed
: Identify the method for validating that policy is followed (ex. Review process of DDR-101 system, or procedure for handling CDs place in the general trash).
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Show the respective changes for balance sheet accounts
: Recently the Fed has been engaging in a contraction policy by selling Treasurysecurities to the non-bank public .
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Determine the amount of deficiency
: Shamrock Corporation, having recently issued a $20,141,900, 15-year bond issue, is committed to make annual sinking fund deposits of $622,900.
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How much dividend income will you receive
: A firm has a market value equal to its book value. Currently, the firm has excess cash of $1,000 and other assets of $6,000. Equity is worth $18,000.
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Find the net present value of this project
: Assume $2,000 a year in Years 1 through 5, $3,000 a year in Years 6 through 8, and $4,000 in Year 9, with all cash flows to be received.
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Implement and test your own readval and writeval procedures
: Implement and test your ReadVal and WriteVal procedures for unsigned integers. displayString should print string which is stored in a specified memory location.
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Determine what was the roa for the period for this firm
: EBIT is $4,000. Invested capital is $500. Depreciation is $500. Interest expense is $200. What is the "cash coverage ratio?"
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What will the carrying value of the liability be
: OL accquired a machine from TOV Corp. on January 1, 2015. In payment for the $18,000 machine.
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