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Question

Please help me with these questions...

JEN Corp. is expected to pay a dividend of $6.50 per year indefinitely. If the appropriate rate of return on this stock is 10 percent per year, and the stock consistently goes ex-dividend 10 days before dividend payment date, what will be the expected maximum price in light of the dividend payment logistics?

Suppose a firm has a retention ratio of 45 percent, net income of $30.8 million, and 5.8 million shares outstanding. What would be the dividend per share paid out on the firm's stock?

Calculating Costs of Issuing Stock TriState Corp. recently went public with an initial public offering in which they received a total of $51.50 million in new capital funding. The underwriter used a firm commitment offering in which the offer price was $33.75 and the underwriter's spread was $3.00. TriState also paid legal and other administrative costs of $1,100,000 for the IPO. What is the number of shares issued through this IPO?

Calculating Costs of Issuing Stock Turbo Technology Corp. recently went public with an initial public offering of 3.02 million shares of stock. The underwriter used a firm commitment offering in which the net proceeds was $7.60 per share and the underwriter's spread was 5 percent of the gross proceeds. Turbo also paid legal and other administrative costs of $220,000 for the IPO. What is the gross proceeds per share received by Turbo from the sale of the 3.02 million shares of stock.

Calculating Fees on a Loan Commitment You have approached your local bank for a start-up loan commitment for $2,600,000 needed to open an auto repair store. You have requested that the term of the loan be one-year. Your bank has offered you the following terms: size of loan commitment = $2,600,000, term = 1 year, up-front fee = 30 basis points, back-end fee = 50 basis points. If you take down 90 percent of the total loan commitment, calculate the total fees you have paid on this loan commitment.