Assuming no market imperfections or tax effects exist

Assignment Help Financial Management
Reference no: EM131059358

ABC currently has 650000 shares of stock outstanding that sell for $75 per share. Assuming no market imperfections or tax effects exist, what will the share peice and the total number of share after each of the following? ( considering each one independently)

a. ABC has a six-for-four stock split?

B. ABC has a 17 percent stock dividend?

C. ABC has a $3.50 cash dividend?

D. ABC has a four-for-six reverse stock split ?

Reference no: EM131059358

Questions Cloud

Electric currents produce magnetic fields : Please write no less than one sentence for each question. Explain how electric currents produce magnetic fields and the right-hand rule.
Is costco issuing new debt or are they liquid : Is Costco issuing new debt or are they liquid? Forecasting - Is Costco in a strong financial position with equity and assets? Stock/stockholder's equity - How much outstanding stock, is Costco heavily obligated to shareholders
What is the total circuit current : Three resistors (18.2 Ω, 22.1 Ω, 11.5 Ω) are connected in parallel across 88 V. What is the total resistance for this circuit? What is the total circuit current?
Draw a bar chart showing the project schedule : Draw a bar chart showing the project schedule.
Assuming no market imperfections or tax effects exist : ABC currently has 650000 shares of stock outstanding that sell for $75 per share. Assuming no market imperfections or tax effects exist, what will the share peice and the total number of share after each of the following?
Find the resistance r1 : When the switch is closed in position a, the current in the battery is 1.12 mA. When the switch is closed in position b, the current in the battery is 1.96 mA.
Evaluate a controversial topic in contemporary management : Research and evaluate a controversial topic in contemporary management. The topic should be approved by the instructor. Email your instructor via the course email for topic approval.
Declining balance depreciation method : Calculate 1,800,000 of investment to be deprecated over 8 year using Declining Balance Depreciation method and declining balance rate of 200%. Show your work in detail please.
Calculate the dividends paid and external financing required : ABC firm has a debt to equity ratio of 2.3( that they wish to maintain) and new investments would cost $35 million this year. The firm expects earnings of 12 million this year. calculate the dividends paid and external equity financing required if th..

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the number of shares in issue if the company

Calculate the number of shares in issue if the company where to pay the dividend and Calculate the number of shares in issue if the company where to repurchase its shares.

  What is best estimate of the stocks current intrinsic price

Decker Tires’ free cash flow for the current year equals $1.32 million. Analysts expect the company's free cash flow to grow by 30% next year, by 10% in the year after that, and at a constant rate of 5% thereafter. The WACC for this company 9.00%. De..

  Wg where wn is the net-of-tax wage rate

In an economy, the supply curve of labor, LS , is given by, LS = − 100 + 200 wn and wn = ( 1 − t ) wg where wn is the net-of-tax wage rate, wg is the gross-of-tax wage rate and t is a proportional tax rate. Sketch the supply curve of labor. Suppose i..

  Manufactures biotech sunglasses-variable cost per unit

Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $10.60 per unit, and the variable labor cost is $5.90 per unit. What is the variable cost per unit? Suppose NSI incurs fixed costs of $580,000 during a year in wh..

  Systematic versus unsystematic risk

Systematic versus Unsystematic Risk (LO2, CFA4) Consider the following information on Stocks I and II:

  What is the expected one-year inflation rate for year

The real risk-free rate is 2.49%. Inflation is expected to be 2.06% this year and 3.7% next year. The maturity risk premium is estimated to be equal to 0.14%(t-1), where t equals the maturity of a bond in years. What is the expected one-year inflatio..

  Standard deviation of that starting salary

You have chosen biology as your college major because you would like to be a medical doctor. However, you find that the probability of being accepted into medical school is about 10 percent. Without considering the additional educational years or the..

  Construct a pro-forma income statement

Construct a pro-forma income statement for next year based on the assumption that sales will grow by 2.0 percent next year - What is the projected free cash flow for December 31, 2015?

  Tax rate would investor be indifferent between two bonds

Corporate bonds issued by Johnson Corporation currently yield 12%. Municipal bonds of equal risk currently yield 7%. At what tax rate would an investor be indifferent between these two bonds?

  Determine the amount of cash received by green corporation

On May 1, 2006, Green Company issued $1,000,000 of 12% bonds dated January 1, 2006 for $975,000. The bonds mature on December 31, 2025, and pay interest semiannually on June 30th and December 31st. The firm's fiscal year ends on December 31st each ye..

  External sources of funding favor a high or low payout ratio

Does Taxes on capital gains are deferred until the capital gain is realized, but taxes on dividends are due in the year in which they are received favor a high or low payout ratio? Does A firm has an established credit line for access to external sou..

  The growth rate of industrial production-inflation rate

Suppose two factors are identified for the U.S. economy: the growth rate of industrial production, IP, and the inflation rate, IR. IP is expected to be 6% and IR 5%. A stock with a beta of 1 on IP and 0.4 on IR currently is expected to provide a rate..

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