What was the growth rate of dividends

Assignment Help Financial Management

Reference no: EM131586595

1. You purchased a stock when the last paid dividend was $4.00. What was the growth rate of dividends if you required a 12% return for the purchase, assumed a constant rate of growth, and paid $44.44 for the stock?

2. Elmofud, Inc. is considering splitting its stock. The stock is currently priced at $100 per share. You own 200 shares of the stock. If the firm proceeds with a 5 for 1 split what will your position in the stock be after the split – how many shares will you own, what will the price per share be, and what will your total value be in the stock of Elmofud, Inc.?

3. You currently own 100 shares of stock in BugsyBuns, Inc. which is currently priced at $6.00 per share. If the firm undertakes a 1 for 4 reverse split, what will your position in the stock be after the split - how many shares will you own, what will the price per share be, and what will your total value be in the stock of BugsyBuns, Inc.?

Reference no: EM131586595

Questions Cloud

A summary of the firm business strategy : Suppose you are an equity analyst at a small, independent firm that sells investment research to its clients. A summary of the firm’s business strategy.

Tuckman five stages of team development : ??As a team goes through Tuckman's five stages of team development, what impact does this have on the three characteristics of effective teams?

The effect of methodism on the english people : Max Weber is not the only scholar to contend that religion can exert an important influence on the process of social change.

Discuss the relationship between ethics and science : discuss the relationship between ethics and science. Science is neither good or bad - it is just the quest to understand

What was the growth rate of dividends : What was the growth rate of dividends if you required a 12% return for the purchase, assumed a constant rate of growth, and paid $44.44 for the stock?

How much revenue should indigo recognize related to its sale : Indigo prepares an income statement for the first quarter of 2017, ending on March 31, 2017, How much revenue should Indigo recognize related to its sale

What do you predict for a sales price of foxtrot : Alpha Industries is considering acquiring Foxtrot Flooring. Foxtrot is worth $20 million to its current owners under its existing operational methods.

What were the institutional changes in the pre transition : What were their interests and how did they reach consensus? What were the institutional changes in the pre and post-transition period?

What business idea you can generate : Business ideas are based from any of those mentioned in the figure of cycle sources given above. Explain the implication, how each can be a source business idea?

User Account

All Pages