What will be john homemade dividend strategy

Assignment Help Accounting Basics
Reference no: EM133187082

Question - Orio limited is about to pay a cash dividend of $5 per share. The current share price is $35. John owns 1000 shares of Tesla, and he prefers a $7 cash dividend. What will be John's homemade dividend strategy?

a. Buy more shares to receive expected cash as a dividend

b. Sell shares to generate $2000 cash.

c. None of the options

d. Sell 85.71 shares to generate the required cash.

Reference no: EM133187082

Questions Cloud

Compute the stockholder equity : ABC Company reported the following data: Bonds payable P300,000 and Additional paid-in capital on common stock 50,000. Compute the Stockholder Equity
What is cost of sales : If sales revenue is $840,000, opening inventory is $200,000, ending inventory is $160,000, What is cost of sales
Journalize the transactions of june : On august 30, Belen sold the remaining shares at 42 per share. Journalize the transactions of June 5, July 15 and Aug 30
Application of graph theory in any of the areas : Propose a project topic related to the application of graph theory in any of the areas - pick a group leader who would represent the group, submit a project
What will be john homemade dividend strategy : The current share price is $35. John owns 1000 shares of Tesla, and he prefers a $7 cash dividend. What will be John's homemade dividend strategy
Evaluate the responses to dissatisfaction : The study of OB enables us to predict the likely behavior of our employees. The goal of these predictions are to improve job satisfaction and increase organizat
Simulate the development of a software product : Software development is an inherently risky and uncertain process. For example, there are many examples of software that couldn't be "finished" by the scheduled
What is the tax loss for the income year : He also derived net exempt income of $17,000. What is the tax loss for the 2021 income year in accordance with Div 36
Characteristics of a digital business strategy model : 1. What are the key characteristics of a digital business strategy model?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

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