Calculate the value of each share in the firm

Assignment Help Finance Basics
Reference no: EM13267443

You own one share in a company called Invest Co. Inc. Examining the balance sheet, you have determined that the firm has $100,000 cash, equipment worth $900,000, and 100,000 shares outstanding. Calculate the price/value of each share in the firm, and explain how your wealth is affected if:

A. The firm pays out dividends of $1 per share.

B. The firm buys back 10,000 shares for $10 cash each, and you choose to sell your share back to the company.

C. The firm buys back 10,000 shares for $10 cash each, and you choose not to sell your share back to the company. D. The firm declares a 2-for-1 stock split.

E. The firm declares a 10% stock dividend. F. The firm buys new equipment for $100,000, which will be used to earn a return equal to the firm's discount rate.

 

Reference no: EM13267443

Questions Cloud

Explain the percent yield of ammonia in the experiment : In one experiment, when 112 grams of calcium oxide was mixed with 224 grams of ammonium chloride, 16.3 grams of ammonia was produced. What is the percent yield of ammonia in the experiment
What are the link length limits due to power and dispersion : A 1 Gb/s optical link is to be operated at the 1.55 m wavelength. Suppose the dispersion at the 1.55 m wavelength is 17 ps/km-nm, and the attenuation is 0.2 dB/km. For achieving a desired error probability, we are given that the receiver requires ..
Find the steady state pll phase error for an incoming phase : A second-order PLL is implemented with a non ideal loop filter: H(s) = (s+a)/(s+b) in which b > 0 is very small. (a) Applying small-signal analysis, determine the transfer function between Oe(s) and Oi(s).
Compute the molarity of a solution of ammonia : Calculate the molarity of a solution made by adding 22.1 mL of concentrated ammonia (28.0 % by mass, density 0.880 g/mL) to some water in a volumetric flask, then adding water to the mark to make exactly 500 mL of solution.
Calculate the value of each share in the firm : You own one share in a company called Invest Co. Inc. Examining the balance sheet, you have determined that the firm has $100,000 cash, equipment worth $900,000, and 100,000 shares outstanding.
Find the line currents and complex power to the load : Generator 1: 10 MVA, 11 kV, X1s=1.6 per unit on a base using generator A's rated voltage and power Generator 2: 20 MVA, 11 kV, X2s=1.2 per unit on a base using generator B's rated voltage and power Impedance of Line 1
State an equation to show how diethyl malonate : Write an equation to show how diethyl malonate can react with sodium ethoxide, Na+OCH2CH33, in an acid-base reaction.
Compare and contrast the use of the first-person of view : Compare and contrast the use of the first-person of view ("POV") in Hunger, The Dwarf and Navie.Super and how do the authors of these novels employ the subjective POV, and what is its intended effect on the reader?
Determine the frequency of the sound : Two in-phase loudspeakers that emit sound with the same frequency are placed along a wall and are separated by a distance of 5.00 m. What is the frequency of the sound

Reviews

Write a Review

Finance Basics Questions & Answers

  What is this stock worth today at a 9 percent discount rate

After that time, the dividends will be held constant at $1.60 per share. What is this stock worth today at a 9 percent discount rate?

  Setting price by marking up cost inherently circular

RoverPlus, a pet superstore, is planning pricing a new RoverPlus labeled dog food. The company will purchase premium dog food from a company in Indiana that packs product with a RoverPlus label.

  Compare channels of distribution to product and price

Please compare Channels of Distribution to Product, Price, & Promotion in terms of its importance within the Marketing Mix.

  Find various stakeholders in publicly traded corporation

Determine who are the various stakeholders in a publicly traded corporation, and why is communication of financial reports important to them?

  Explain the objectives involved in the management

Explain the objectives involved in the management of a bank's overall liquidity position and the costs to the bank of poor liquidity management.

  Calculate net benefit

American Steel and Rubber feels that a lockbox system can shorten its accounts receivable collection period through two days. Credit sales are $3,000,000 per year, billed on a continuous basis.

  Capm model-mka stock

The CAPM model was developed by Treynor, Sharpe, Linter, and Mossin in the early 1960s. Compute the expected rate of return for MKA stock using CAPM model.

  Problems of multinational enterprises

Examine the successes and problems of multinational enterprises (MNEs) in exploiting the opportunities in emerging markets.

  Retirement annuity problem

Suppose that she can obtain a 9% average return on her deposits and on her funds accumulated on her retirement plan.

  Determine proportion of portfolio invested in stock

Nico have hundred shares of stock X which has a price of $12 per share and 200 shares of stock Y which has a price of $3 per share. Determine proportion of Nico's portfolio invested in stock X?

  Calculate her maximum contribution to a coverdell education

Shania, a single parent, has modified AGI of $98,000. Calculate her maximum contribution to a Coverdell Education Savings Account for her 8-year old son in 2013.

  Question on current value of stock

Stephens Development Company paid a dividend of$1.12 over the last 12 months. the dividend is expected to grow at a rate of 20% over the next 3 years(supernormal growth).

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