What is the firm value after the dividend

Assignment Help Financial Management
Reference no: EM131924415

You are employed in the Finance Division of a firm that has 432,575,120 shares outstanding. The current share price is $38.65. The forecast earnings are $1,574,600,000. Calculate the current market value of firm equity and the earnings per Share (EPS). The firm has accumulated a stockpile of $2,200,000,000 in excess cash, and the directors want to pay-out these funds to the shareholders. You have been asked to compare the effects of a special one-time dividend and a share repurchase. If the funds are paid out as a one-time special dividend, what will be the dividend per share (DPS)? What is the firm value after the dividend? What is the share price after the dividend? What is the EPS after the dividend? If the firm executes a share repurchase, how many shares can it purchase at what price? How many shares will remain? What is the firm value after the repurchase? What is the share price after the repurchase? What is the EPS after the repurchase?

Reference no: EM131924415

Questions Cloud

Completing the reflection journal entry : Completing this Reflection Journal Entry will give you the opportunity to practice and reflect on another "tool" for your "toolkit" of approaches that support.
What is the profit to the investment bank : How much money does XYZ receive after commission? What is the profit to the investment bank?
What human activities are impacting the carbon cycle : What human activities are impacting the carbon cycle? How does having an overloaded carbon cycle impact the greenhouse effect?
What products are excluded from the gdp computation : Gross Domestic Product (GDP) measures the market value of the final goods and services produced within a country during a given period of time.
What is the firm value after the dividend : What will be the dividend per share (DPS)? What is the firm value after the dividend? What is the share price after the dividend?
Summarize the firms history that affect it most : Select a Global Fortune 500 company (it cannot be a company you work for) that operates in the United States and in other nations around the world.
The accounting and NPV break-even levels of sales : What will be the accounting and NPV break-even levels of sales, if the firm's tax rate is 40%?
What are the strengths of the advertisement : What is the goal of the advertisement? Is it successful? Explain with specific examples from the ad. What are the strengths of the advertisement?
What is the stock price of MEP : How much money does MEP receive? What is the stock price of MEP?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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