What was the book value per share of the firm before

Assignment Help Finance Basics
Reference no: EM13304146

Mesmer Analytic, a biotechnology firm, floated an initial public offering of 2,000,000 shares at a price of $5.00 per share. The firm's owner/managers held 60 percent of the company's $1.00 par value authorized and issued stock following the public offering. One month after the IPO, the firm's board of directors declared a one-time dividend of $0.50 per share payable to all stockholders, meaning that the owner/managers would receive an immediate dividend, in part out of the pockets of the new public stockholders. What was the book value per share of the firm before and after the special dividend was paid?

$2.60; $2.10
$2.60; $2.60
$2.60; $2.30
$1.60; $1.10
$1.60; $1.00

 

Reference no: EM13304146

Questions Cloud

What is the mass of each of the stars : A visual binary system is at a distance of 5.0 pc. The distance between the two stars subtends an angle of 4.5 arcseconds. What is the mass of each of the stars
Extend the user management : Extend the user management so that user can be stored in database - user can be administrator and he can access that admin page
What is blow glass book value per share : Blow Glass also has another 400,000 shares of stock that are shelf registered. Blow Glass has retained earnings of $9,000,000 and additional paid-in capital of $1,000,000. What is Blow Glass's book value per share?
Determine what is the change in water depth for one year : A pond has a surface area of 1.0 acre. A stream flows into the pond at 1.2 cubic feet per second for the entire year. The evaporation rate, also steady for the entire year, is 1 in. /month. Assume that the pond is in the shape of a cylinder.
What was the book value per share of the firm before : What was the book value per share of the firm before and after the special dividend was paid?
Explain how to determine the slant range r : The ball is released from position A and drops 0.75m to the incline. If the coefficient of resistitution in the impact is e=0.85, determine the slant range R. See Engineering Mechanics Dynamics meriam and Kraige 7th edition number 3/255 for figure
How can specializing in lending help to reduce : How can specializing in lending help to reduce the adverse selection problem in lending?
Communication is one important factor : Communication is one important factor in a team as we know either by phone or email it is necessary but sometimes we face different problem in this area because we can send the wrong message maybe to the wrong person or make a mistake by writing the ..
How much value has the greens management added : The firm now has 1000 shares of common stock outstanding, and its selss at a price of 42.00 per share. How much value has the Green's management added to stockholder wealth over the years, ie what is Green's MVA?

Reviews

Write a Review

Finance Basics Questions & Answers

  Select the higher npv project

A construction company is evaluating two value-adding projects. The first project deals with building access roads to a new terminal at the local airport. The second project is to build a parking garage on a piece of land that the company owns..

  Which of the following is appropriate closing entry for sale

Calico corners a small gift shop earned sales revenues for the year totaling $62,500. Which of the following is the appropriate closing entry for the sales revenues account at the end of the period?

  What is jose expected profit from the soft drink machine

Assume 250 working days in a year and ignore taxes and the time value of money. What is Jose's expected profit from the soft drink machine?

  Calculating debt ratio

The Altman Corporation has a debt ratio of 33.33%, and it needs to raise $100,000 to expand. Management feels that optimal debt ratio would be 16.67%.

  What value should be assigned to this machine

The firm is considering using this machine in a new project. If it does so, what value should be assigned to this machine and included in the initial costs of the new project?

  Computation of the cost of equity using capm

Computation of the cost of equity using CAPM and What is the cost of the firm's common stock equity

  Finance based question

A store sells almonds fo $6 a pound, cashews for $5 a pound, and peanuts for $2 a pound. One week the manager decides to prepare hundred sixteen ounce packages of nuts by mixing 40 pounds of peanuts with some almonds and cashews.

  Determine break even point

Student A is considering to finance her college education by selling programs at the football games for school. There is a fixed cost of $400 for printing these programs, and the variable expense is $3.00.

  What will the value of this stock be 5 years from today

Long Life Floors just paid an annual dividend of $0.82 a share and plans on increasing future dividends by 2 percent annually. The discount rate is 15 percent. What will the value of this stock be 5 years from today?

  Determine length of the inventory period

The Corner Market has sales of 898,000 and a cost of goods sold equal to 70 percent of sales. The beginning inventory is 64,000 and the ending inventory is 71,000.

  What is the current value of these securities

The bonds were issued with a 6.0 percent coupon rate (paid semiannually) and a par value of $1,000. The required rate of return is 4.50 percent. What is the current value of these securities?

  Role of economic value and replacement value

Critically evaluate these comments. Please don't wander; concentrate on the issues stated by quotation.

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