What was the? firms earnings per? share

Assignment Help Financial Management

Reference no: EM131309731

In the spring of? 2016, the CFO of HTPL Distributing Company decided to distribute a stock dividend to its shareholders.? Specifically, the CFO proposed that the company pay 0.04 shares of stock to the holders of each share of common stock such that the holder of? 1,000 shares of stock would receive an additional 40 shares of common stock.

a. If the firm had total net income for the year of $ 12000000 and had 22000000 shares of common stock outstanding before the stock? dividend, what was the? firm's earnings per? share?

b. After paying the stock? dividend, what was the? firm's earnings per? share?

c. If you owned? 1,000 shares of stock before the stock? dividend, how many dollars of earnings did the firm earn from your?1,000-share investment? After the stock dividend was? paid, how many dollars of earnings did the firm earn on your larger share?holdings? What effect would you expect from the payment of the stock dividend on your total investment in the? firm?

Reference no: EM131309731

Questions Cloud

The return expected on this investment measured in dollars : Your firm, Nurse International has identified an investment for your hospital. Your boss is expecting you to complete a comprehensive, analytical, response to this project (details to follow) . Your firm’s opportunity cost rate is 10%. What is the re..

What is the inventory order point : Knutson Products Inc. is involved in the production of airplane parts and has the following inventory, carrying, and storage costs: Determine the optimal EOQ level. How many orders will be placed annually? What is the inventory order point?

Calculate the bond equivalent yield : A 90-day Treasury bill is quoted at an asked price of 2.5% (discount basis): Calculate the dollar price. Calculate the bond equivalent yield.

Key financial ratios required for successful investing : Prepare a two- to three-page paper addressing the keys to successful investing as you would apply them to a product or service that you would launch. Using Appendix A, address the following points: Describe the key financial ratios required for succe..

What was the? firms earnings per? share : In the spring of? 2016, the CFO of HTPL Distributing Company decided to distribute a stock dividend to its shareholders.? Specifically, the CFO proposed that the company pay 0.04 shares of stock to the holders of each share of common stock such that ..

The price is right : Much to your surprise, you were selected to appear on the TV show, "The Price is Right." As a result of your prowess in identifying how many rolls of toilet paper an average American family keeps on hand, you win the opportunity to choose one of the ..

What is the company market capitalization : ABM Company has 50 million shares outstanding. If ABM's shares are trading at $19.16 per share, What is the company's market capitalization (value of equity?). Assuming the market value of debt equal today's book value of debt

What is annual total costs of post card inventory : Cheeseburger and Taco Company purchases 8,912 boxes of cheese each year. It costs $19 to place and ship each order and $8.32 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders. What is th..

What is value of the option to abandon : We are examining a new project. We expect to sell 6,100 units per year at $75 net cash flow apiece for the next 10 years. In other words, the annual operating cash flow is projected to be $75 × 6,100 = $457,500. If success and failure are equally lik..

User Account

All Pages