>> 1 2 Adeelza Deel Inc. has $40 million in total assets which includes $4 million in excess cash. The firm expects $27 million in net income this year of which 50% will be paid out as dividends to the 3,800,000 shares outstanding. In an effort to disburse the excess cash to its investors, the firm plans on buying back 10% of its shares outstanding. If an individual investor owns 500 shares, what will the investor recieved in total dividends after the stock buy-back? 3 45678 9 10 11 12 13 14 B C
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- Olmsted Inc. has $40 million in excess cash and no debt. The firm expects to generate additional free cash flows of $32 million per year in subsequent years and will pay out these future free cash flows as regular dividends. Olmsted's unlevered cost of capital is 10% and there are 8 million shares outstanding. Olmsted's board is meeting to decide whether to pay out its $40 million in excess cash as a special dividend or to use it to repurchase shares of the firm's stock.Including its cash, and enterprise value, Olmsted's total market value is closest to ________. Group of answer choices $432.00 million $360.00 million $288.00 million $720.00 millionBrightland Inc. has a market value equal to its book value. Currently, thefirm has excess cash of $1,500, other assets of $5,800, and equity valuedat $5,000. The firm has 250 shares of stock outstanding and net income of$500. What will the new earnings per share be if the firm uses 30 percentof its excess cash to complete a stock repurchase?Omicron Technologies has $50 million in excess cash and no debt. The firm expects to generate additional free cash flows of $40 million per year in subsequent years and will pay out these future free cash flows as regular dividends. Omicron's unlevered cost of capital is 11 % and there are 10 million shares outstanding. Omicron's board is meeting to decide whether to pay out its $50 million in excess cash as a special dividend or to use it to repurchase shares of the firm's stock. Assume that Omicron uses the entire $50 million in excess cash to pay a special dividend. Omicron's cum - dividend price is closest to: Question content area bottom Part 1 A.$ 50 B.$ 83 C .$41 D.$ 33
- Omicron Technologies has $50 million in excess cash and no debt. The firm expects to generate additional free cash flows of $40 million per year in subsequent years and will pay out these future free cash flows as regular dividends. Omicron's unlevered cost of capital is 11% and there are 10 million shares outstanding. Omicron's board is meeting to decide whether to pay out its $50 million in excess cash as a special dividend or to use it to repurchase shares of the firm's stock. Assume that Omicron uses the entire $50 million in excess cash to pay a special dividend. Omicron's cum - dividend price is closest to: A. $ 50 B. $83 C. $ 41 D.$33. In June 2022, Wild Company had excess cash that would not be needed until March 1, 2022. Management decided to invest the money in a short-term investment in FVTPL financial assets. Wild owned no investment financial assets before June 2022. The following transactions relate to these investments: June 20 Purchase 10,000 shares of West Corporation stock. The price paid was P104,500. September 2 Received a cash dividend of P1.20 per share on West stock. October 5 Sold 4,000 shares of West stock at P10.00 per share. Paid a selling commission of P400. December 31 The market price of West stock was P11.00. Required: Compute the realized gain or loss on October 5, 2022. Compute the amount of unrealized gain or loss that will be reported to income statement for 2022. Assume that the fair value of the investment on December 31, 2023 is P14/share. Compute the amount of unrealized gain or loss that will be reported to income statement for 2023.Camtek currently has assets of $25,000,000. Given the significant growth of the company's activities, this asset should reach $33,000,000 within a year if Camtek succeeds in obtaining the necessary financing. Currently, the company's capital structure is as follows (book values): Long-term debt $10,000,000 Preferred shares (150,000 shares) $5,000,000 Common shares $8,000,000 Profits not distributed $2,000,000 This capital structure (proportions of each source of financing) is considered optimal; the company does not foresee any significant change to this structure for the next few years. A dividend of $2 per share has just been paid to common shareholders of the company. This dividend was $2.50 7 years ago. Camtek common stock was split 2 for 1 2 years ago. It is estimated that for the next few years (until infinity) the growth of the ordinary dividend and earnings per share will be the same as the average of that of the last 7 years. Currently,…
- Assume we are in a Modigliani-Miller (no tax) world. Exeter Corporation has $20 million in excess cash and has no debt. The firm expects to generate additional cash flow of $48 million per year in perpetuity. It has 10 million shares outstanding. Exeter Corporation decides to use the $20 million excess cash to repurchase shares in the stock market. After the share repurchase Exeter plans to distribute all of its annual cash flow as dividends every year. Exeter Corporation’s cost of capital is 12%. ( a) What would be the stock price reaction after the announcement of the plan? (b) Calculate the share price after the announcement. (c) How many shares can Exeter Corporation buy with its excess cash? (d) Show that the share price after the share repurchase transaction is identical to post-announcement price.Assume we are in a Modigliani-Miller (no tax) world. Exeter Corporation has $20 million in excess cash and has no debt. The firm expects to generate additional cash flow of $48 million per year in perpetuity. It has 10 million shares outstanding. Exeter Corporation decides to use the $20 million excess cash to repurchase shares in the stock market. After the share repurchase Exeter plans to distribute all of its annual cash flow as dividends every year. Exeter Corporation’s cost of capital is 12%. Q: What would be the stock price reaction after the announcement of the plan?Blue TJ’s has a market value equal to its book value. Currently, the firm has excess cash of $389,000, other assets of $911,674, and equity of $886,200. The firm has 60,000 shares of stock outstanding and net income of $984,800. Management has decided to spend 20 percent of the firm’s excess cash on a share repurchase program. How many shares of stock will be outstanding after the stock repurchase is completed?
- Xtel Inc. with a total market value of $630 million has $30 million in excess cash and no debt. Xtel has 1 million shares outstanding. Xtelʹs board is meeng to decide whether to pay out its $30 million in excess cash as a special dividend or to use it to repurchase shares of the firm’s stock. You own 1,000 shares of Xtel stock. 1. Assume that Xtel uses the entire $30 million to repurchase shares. You are unhappy with Xtelʹs decision and would prefer that Xtel used the excess cash to pay a special dividend. As a result, you decide to create a “homemade” dividend. What is the number of shares that you would have to sell in order to receive the same amount of cash as if Xtel paid the special dividend? Briefly explain your workings. 2. Assume that Xtel uses the entire $30 million to pay a special dividend. You are unhappy with Xtelʹs decision and would prefer that Xtel used the excess cash to repurchase shares. What is the number of shares that you would have to buy at ex-dividend price…Mitsui Ltd has 1 million issued shares and expects unlevered after-tax cash flows of $300,000 every year, forever. The company is all-equity financed, and its cost of capital is 12% p.a. The company's tax rate is 30%. The company has just announced its intention to borrow an additional $1,400,000 of perpetual debt (at a 7% p.a. interest rate) and use the proceeds to repurchase shares? a) Calculate the price per share of Mitsui Ltd immediately before the repurchase announcement. b) Calculate the price of a share in Mitsui Ltd immediately after the repurchase announcement but before the new borrowings occur (assuming that the market expects repurchase to occur with certainty and that there are no other information effects). c) Calculate the cost of equity capital for Mitsui Ltd after the share repurchase (ignoring other information effects).Xtel Inc. with a total market value of $630 million has $30 million in excess cash and no debt. Xtel has 1 million shares outstanding. Xtelʹs board is meeng to decide whether to pay out its $30 million in excess cash as a special dividend or to use it to repurchase shares of the firm’s stock. You own 1,000 shares of Xtel stock. Assume that Xtel uses the entire $30 million to pay a special dividend. You are unhappy with Xtelʹs decision and would prefer that Xtel used the excess cash to repurchase shares. What is the number of shares that you would have to buy at ex-dividend price in order to undo the special cash dividend that Xtel paid?