User Account

All Pages

What is current stock? price-kms corporation

Assignment Help Finance Basics
Reference no: EM132689647

KMS Corporation has assets with a market value of ?$570 ?million, ?$44 million of which are cash. It has debt of ?$239 ?million, and 10 million shares outstanding. Assume perfect capital markets.

a. What is its current stock? price?

b. If KMS distributes ?$44 million as a? dividend, what will its share price be after the dividend is? paid?

c. If? instead, KMS distributes ?$44 million as a share? repurchase, what will its share price be once the shares are? repurchased?

d. What will its new market? debt-equity ratio be after either? transaction?

Reference no: EM132689647

Questions Cloud

What is? pelamed 2006 net? income : Pelamed Pharmaceuticals has EBIT of $345 million in 2006. In? addition, Pelamed has interest expenses of $139 million and a corporate tax rate of 21%.
Explain the major components of the civil service system : Explain the major components of the civil service system. Explain one way in which you might improve the civil service system.
What is the initial value of? gladstone equity : Gladstone Corporation is about to launch a new product. Depending on the success of the new? product, Gladstone may have one of four values next? year
How many sandwiches must the shop sell to break even : If the sandwich price was reduced by $0.25, how many sandwiches must the shop sell to make $1191 profit? How many sandwiches must the shop sell to break even?
What is current stock? price-kms corporation : KMS Corporation has assets with a market value of ?$570 ?million, ?$44 million of which are cash. It has debt of ?$239 ?million, and 10 million shares outstandi
Find how important is the enforcement of financial reporting : Are additional laws likely to prevent corporate collapse? How important is enforcement of financial reporting requirements in promoting high quality reporting?
Part in development of healthcare policy : How do these two forces play a part in the development of healthcare policy relative to government healthcare programs?
What is the price of a share of hnh? stock : The HNH Corporation will pay a constant dividend of $2.00 per? share, per? year, in perpetuity. Assume all investors pay a 20% tax on dividends
Explain what are the ethical issues involved : Explain what are the ethical issues involved? The setting of accounting standards requires some assessment of economic and other benefits and costs.

Reviews

Write a Review

Finance Basics Questions & Answers

  The risk-free rate is 8 the average market return is 12

a project will require an cash outlay of 65000 and inflows of 12000 per year for 12 years. the project is expected to

  Facebook has never paid a dividend

Mr. Milquetoast is enthusiastic about the prospects for Facebook. He wants to invest $100,000 in stock, but hesitates because Facebook has never paid a dividend

  Which of the given do you consider pure public goods

Which of the following do you consider pure public goods? Private goods? Why?

  Internal rate of return on investment

Suppose you purchased an income-producing property for $395,000 five years ago. In year 1, you were able to negotiate a lease that paid $30,000

  Question of finance problem and time value of money

You own a pipeline which will generate a $2 million cash return over coming year. The pipeline's operating costs are negligible. What is the PV of the pipeline's cash flows if its cash flows are assumed to last forever? What is the PV of the cash flo..

  Embark on an international negotiation

You are about to embark on an international negotiation. You work for a multinational oil company, and your company has decided to set up a joint venture with Saudi Arabia and another one with a company in Russia. You are leading the negotiations.

  What annual contributions to the retirement fund

You wish to retire in 20 years, at which time you want to have accumulated enough money to receive an annual annuity of $32,000 for 25 years after retirement. During the period before retirement you can earn 8 percent annually, while after retirement..

  What is an investment banker and what does he do

What is an Investment Banker? What does he do? Why would a company use one? What are the components of the nominal interest rate? What does each component pay for?

  Indifference level of ebit for the two financing plans

Jimmy Pesto Company has a current capital structure consisting of $25 million in long-term debt with an interest rate of 8%, $10 million in preferred equity

  Estimation of rate of return

Sharon Shay estimates that a college education has a $28,000 equivalent expense at graduation. She believes the benefits of her education will occur throughout 40 years of employment.

  Should any other variables have been included

Arrange these variables in dimensionless groups. Should any other variables have been included?

  Discuss the pros and cons of these methods

Discuss the pros and cons of these methods, and provide some examples of each method and if it has or has not been successful.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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