User Account

All Pages

How much will the eps be after the proposed repurchased

Assignment Help Finance Basics
Reference no: EM13292177

The DOTDOT Company has earnings available for common stockholders of RM4 million and has 320,000 shares of common stock outstanding at RM50 per share. The firm is currently contemplating the payment of RM3.50 per share in cash dividends.

a) Calculate the firm's current earnings per share (EPS) and price/earnings (P/E) ratio.
b) If the firm can repurchase stock at RM54 per share, how many shares can be repurchased in order of making the proposed cash dividend payment?
c) How much will the EPS be after the proposed repurchased? Why?

 

Reference no: EM13292177

Questions Cloud

Determine speed of the rotor field with respect to stator : A three-phase, 5 hp, 208 V, 60 Hz induction motor runs at 1746 rpmwhen it delivers rated output power. (a) Determine the number of poles of the machine. (b) Determine the slip at full load. (c) Determine the frequency of the rotor current.
Rising cost of health insurance premiums-longterm service : who pioneered the transformation of nursing into a recognized profession? under the hill-burton act, federal grants were given on the basis of. how are employers coping with the rising cost of health insurance premiums? which type of longterm care se..
Obtain the direction of the acceleration of the object : Only two forces act on an object (mass=3.76 kg), as in the drawing. Find the direction (relative to the x axis) of the acceleration of the object
Find input power to the circuit from the source at frequency : A 120V(rms), variable-frequency source is connected in series with a 100Ω resistor and 100μF Capacitor. Find the input power to the circuit from the source at the frequency where the power factor of thr load is 0.75.
How much will the eps be after the proposed repurchased : The DOTDOT Company has earnings available for common stockholders of RM4 million and has 320,000 shares of common stock outstanding at RM50 per share. The firm is currently contemplating the payment of RM3.50 per share in cash dividends.
Find the height of her image on the image sensor : A camera is supplied with two interchangeable lenses, whose focal lengths are 41.0 and 150.0 mm. What is the height (including sign) of her image on the image sensor
What is the rating of the capacitor needed to raise the pf : A manufacturing plant has an installed capacity of 999 kVa ofpower. Its total connected load is 800 kW with system power factorof 60%. a. Is the installed capacity sufficient to supply the total connected load
Compare the total value of miya stock holding : If the analyst believe that the price will fall 25% from the initial price after the split, does Miya experience any gain or loss on the stock?
Determine how much voltage is on the capacitor at t : A 100mF capacitor is connected in series with a 10 kW resistor and a 10-VDC source for 2 seconds. Then it isdisconnected quickly and connected to a single resistor of 1kW. (a) Write the capacitor voltage,vc(t), for 0

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the expected change in net income

The interest rate on the notes payable is 10%, and the tax rate is 40%. If the firm implements the plan, what is the expected change in net income?

  Risk tolerance levels of investors

Discuss and explain the risk tolerance levels of investors and also describe your risk tolerance level?

  Present value question

The Daily Tribune is performing an impairment test of its printing press as of December 31, 200X, and estimates that the press will generate net cash flows of $8,000 per year for the next 4 years.

  Compute earnings per share

Compute earnings per share EPS under each of the three economic scenarios assuming that the firm goes through with the recapitalization

  What is the value of rolens preferred stock

Several years ago, Rolen Riders issued preferred stock with a stated annual dividend of 11% of its $100 par value. Preferred stock of this type currently yields 9%. Assume dividends are paid annually.

  Compute the forward discount

Assume Credit Suisse Quotes spot ninety day forward rates of $0.7957-60, 8-13. Determine the outright 90 day forward rates that Credit Swiss is quoting?

  How much will she have to invest annually to reach

She can invest a certain amount at the beginning of each of the next four years in a bank account that will pay her 6.8 percent annually. How much will she have to invest annually to reach her target?

  Calculate the required monthly payment

Mr. and Mrs. Smith plan to purchase a home in Los Angeles in October, 2010. The purchase price of the home is $580,000. They plan to pay 20 percent down payment.

  Time value of money comparises computing future value

Time value of money comparises computing future value of investment and Time value of money involves calculation of interest rate

  Estimation of net present value

A proposed project can generate savings of $1000 per year for ten years. The initial cost of the project is $2500 and the project has a salvage value of $500 in the 10th year.

  What is the required return on the companys stock

XXX is expected to maintain a constant 4.9 percent growth rate in its dividends, indefinitely. If the company has a dividend yield of 5.7 percent, what is the required return on the company's stock?

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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