What must the liquidating dividend be

Assignment Help Financial Management

Reference no: EM13847484

JJ Industries will pay a regular dividend of $2.3 per share for each of the next four years. At the end of the four years, the company will also pay out a liquidating dividend. If the discount rate is 7 percent, and the current share price is $64. What must the liquidating dividend be?

Reference no: EM13847484

Questions Cloud

What is the earnings and dividend per share figure : Draiman, Inc., has sales of $600,000, costs of $258,000, depreciation expense of $63,500, interest expense of $30,500, and a tax rate of 40 percent. The firm paid out $43,500 in cash dividends and has 55,000 shares of common stock outstanding. What i..

Describe how acquisition affects number balance sheet : The book value of Little Statistic’s total assets is $400,000. Suppose Number Crunching Inc. acquires Little Statistic’s assets for $1 million and finances the purchase by selling $600,000 in new stock, $300,000 in new debt, and reducing cash by $100..

Why is this figure different from its accounting income : During 2011, Lele Design earned net income of $250,000. The firm neither bought nor sold any capital assets. The book value of its assets declined by the year’s depreciation charge of $200,000. The firm’s operating cash flow for the year was $450,000..

Global financing and exchange rate topics : Explain how your topic is used in global financing operations and describe its importance in managing risks.

What must the liquidating dividend be : JJ Industries will pay a regular dividend of $2.3 per share for each of the next four years. At the end of the four years, the company will also pay out a liquidating dividend. If the discount rate is 7 percent, and the current share price is $64. Wh..

Stock with margin and without margin : Suppose you sell the stock at a price of $37. What is your return? What would your return have been had you purchased the stock without margin?

Calculate value of share of stock-discounted dividend model : Using the P/E ratio approach to valuation, calculate the value of a share of stock under the following conditions: the investors required rate of return 14%. the expected level of earning at the end of the year (E1) is $5. the firm follows a policy o..

Applying results to both unlevered and levered firms : When calculating WACC and applying the results to both unlevered (no debt) and levered (debt) firms, the levered firm is shown to be more valuable. Two identical firms and the firm with debt is more highly valued. Does this make sense? Why or Why not..

Do you agree with the conviction and acted ethically : Martha Stewart and her Investment Counselor were indicted, convicted, and did jail time for insider trading. Go on the Internet and find an article about Martha’s case. Do you think they acted ethically? Do you agree with the conviction? Explain why ..

User Account

All Pages