Zebra Corporation currently has 2,500,000 shares of stock outstanding that sell for RM45 per share. Assuming no market imperfections or tax effects exist, determine the share price be after . Determine the new number of shares outstanding when Zebra has a four-for-seven reverse stock split.
Q: A firm borrows 2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due...
A: We need to use the concept of time value of money here. We will first have to find the amount at the...
Q: You are a portfolio manager. John Smith, one of your clients, by providing you the following formati...
A: Standard deviation of the returns of a stock The standard deviation of the returns of a stock measur...
Q: 18. TSE has an equity multiplier of 1.88, and its assets are financed with some combinations of long...
A: Equity multiplier = 1.88
Q: Find the present value of the ordinary annuity. (Round your answer to the nearest cent.) $1500/semi...
A: Present value of the ordinary annuity can be calculated by annuity amount multiply with Present valu...
Q: 1. What are the different types of deposit accounts and loans offered to customers by any one commer...
A: Banks in Oman offer a wide range of financial products and services to large, medium, and small reta...
Q: Find the nominal rate which if converted quarterly could be used instead of 12% compounded monthly.
A: Effective annual rate (EAR) refers to a real interest rate which an investor is expect from his inve...
Q: Bond J has a coupon of 6.4 percent. Bond K has a coupon of 10.4 percent. Both bonds have 20 years to...
A: Here,
Q: Every three years, D will pay Mr. J 5,000 at 8% rate to settle his loan. Mr. D will use which formul...
A: An Annuity:- An annuity is a fixed amount of perodic payment that an individual receive or pay for a...
Q: Summit Systems will pay a dividend of $1.48 this year. If you expect Summit's dividend to grow by ...
A: Expected dividend (D1) = $1.48 Growth rate (g) = 5.3% Cost of capital (r) = 10.7%
Q: A credit card company offers an annual 2% cash-back rebate on all gasoline purchases. If a family sp...
A: Solution:- Rebate means the discount or cash back offered by the company to its seller.
Q: You invest $900 in stock A and $900 in stock B. If you earn 10 percent on stock A and 5 percent on s...
A: Time value of money (TVM) is used to measure the value of money at different point of time in the fu...
Q: Joshua inherited six parcels of land. He sold one parcel to secure funds for his school expenses. Jo...
A: A contract is a legally enforceable promise or set of promises that provides access to remedies for ...
Q: Why might disinflation prove favorable to financial assets?
A: Disinflation is the reduction or lowering of the pace of inflation. In other words in situation of d...
Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...
A: Capital Budgeting: It is the planning process which is undertaken by business to analyse potentia...
Q: he purchase price of a front vith its purchase, is $117,450. The life of the loader is 6 years, at w...
A: The equipment is going to be decrease in value and with use of equipment annually the value of equip...
Q: What is the net asset value of an investment company with $10,800,000 in assets, $630,000 in current...
A: Net asset value refers to the market value of the shares of the company based on net worth. Net asse...
Q: You decide to originate the loan, but move at the end of 5 years. What is the remaining balance you ...
A: Loan Amount $ 3,00,000.00 Time Period 30 Years Interest Rate 7.20%
Q: 4. LSP Inc. reported the following financial facts at the year-end Dec 2018. Total Interest-Bearing ...
A: Based on the information available we will calculate the net income, taxes, and other costs.
Q: nas is bonds mature annually at the rate of P1,000,000 on February 1, 2022 and every year thereafter...
A: Amortization is an accounting technique used to reduce the value of a loan or immovable asset over a...
Q: P14-23 ETHICS PROBLEM Assume that you are the CFO of a company contemplating a stock repurchase next...
A: Stock repurchase (or share repurchase) is that financial event in which a company buys back its own ...
Q: Refuse, Inc. just paid a dividend of $2. Refuse expects dividends to grow at 4% indefinitely The etu...
A: Share price Share price is the current market price of the share. It is the price of the share at wh...
Q: H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed a...
A: OCF is the operating cashflow of a company. It is the cash generated from normal business operations...
Q: Alternative atio 30% ratio 70% FDebt 10%
A: Earnings per share per share is calculated by dividing a firm ’s profit by the number of outstanding...
Q: Mr. Jackson is faced with a scenario and as a final year banking and finance student; you are requir...
A: Investing or borrowing a sum of money for a period of less than one year is known as short-term fina...
Q: Assume that the interest rate on 1 year t-bill in Canada is .60% and the interest rate for similar p...
A: Time Period = 1 Year Interest Rate of Canada = 0.60% Interest Rate of US = 1%
Q: = sinking fund formula, calculate the
A: Payment per month refers to the amount which a borrower should at the end of each month or period to...
Q: Your parents have discovered a $1,000 bond at the bottom of their safe-deposit box. The bond was giv...
A: Bond is the debt security that investors uses to reduce the risk and increase stable return from the...
Q: ) The time is progressed by using the event count method.
A: Event count method is the process of measure the no. Of discrete events over period of time.
Q: 1. An investor deposits P10,000.00 at the end of each year in an account which gives a nominal annua...
A: Annual deposit (A) = P 10000 Accumulated value = X n = 10 years r = 5% continuously compounded
Q: Find the amount (future value) of the ordinary annuity. (Round your answer to the nearest cent.) $1...
A: Given that P=$1300 t= 7 Years Compounded semiannually = 7*2=14 r=4.5%=0.045
Q: PROBLEM 3: A P2 000 loan was originally made at 8% simple interest for 4 years . At the end of this ...
A: Loan (L) = P 2000 Simple interest rate for 4 years (r) = 8% Interest rate for 3 more years (6 semian...
Q: A finance company paid a merchant $3,975 for a conditional sale contract after discounting it to yie...
A: The value of payment or receipt to be executed in future at present time is called the Present Value...
Q: A $14,500 bond that has a coupon rate of 5.80% payable semi-annually and maturity of 5 years was pur...
A: Face value (F) = $14500 Coupon (C) = (5.80% * 14500) / 2 = $420.50 n = 5 years = 10 periods t = 6 pe...
Q: Ayush Power Limited has reported a net profit of 6 crore, 7.5 crore and 3 crore for the financial ye...
A: According to section 135 of the companies act 2013 every company whose: i) Net worth is Rs 500 cr. o...
Q: Please answer the following question according to the figure below. 1. How does increase in debt aff...
A: Debt and equity financing Each source of financing has its own advantages and disadvantages. For exa...
Q: You just purchased a share of SPCC for $95. You expect to receive a dividend of $7 in one year. If...
A: Total return includes dividend yield and capital gain yield
Q: What is the present value of a $90 annual annuity for 10 years with an additional $1000 received at ...
A: Present value of annuity Annuity is a series of equal payments at equal interval till a specified pe...
Q: A bank deposit paying simple interest at the rate of 6%/year grew to $1300 in 8 months. Find the pri...
A: The interest calculation made for a loan or investment is ascertained using simple and compounded me...
Q: Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed o...
A: Given: Principal “P” = $500 Simple rate = 9% Number of years “t” = 11
Q: An investor holds title to an asset worth $335.25. To raise money for an unrelated purpose, the inve...
A: Forward contracts are buy or sell agreement between two parties that specify the exchange of asset o...
Q: Which medium has the lowest cost per thousand (CPM)?
A: Lowest cost per thousand can be found by dividing the cost of Ad by audience size and then multiplyi...
Q: to deposits of $80 a month for 18 years, then they are offering a guaranteed rate of 4.5% interest c...
A: Future Value of Annuity: It is the future worth of the present annuity stream cash flows. It is com...
Q: 3. Orange Company recently reported $10,500 of sales, $4,000 of operating costs other than depreciat...
A: As per Bartleby Honor Code, when multiple questions are asked, the expert is required only to solve ...
Q: Emily Dao, 27, just received a promotion at work that increased her annual salary to $37,000. She is...
A: Since you have posted a multiple question, therefore, we will be solving the first question only as ...
Q: Regular investments made at the beginning of each quarter earn 6.4% compounded quarterly. How many m...
A: Payments are made at the beginning, hence this is an annuity due. Quarterly payment = Q r = 6.4% per...
Q: what is the stock market, and why is it important?
A: Stock Market: Stock markets are platforms where the sellers & buyers meet for the exchange of e...
Q: The manked pice of a bicyele So00-andl the selling paice 3 Gaco/-Whoatis the diseunt bieycde? CATION...
A: Cash Discount: Cash Discount is the discount provided by the sellers to encourage buyers to make pa...
Q: Purple Corporation just purchased a call option for 10,000 Red Corp. ordinary shares at a strike pri...
A: Market value per share us P534 Volatility is 10% Risk free rate is 3% Strikr price is P489 Time peri...
Q: Consider a portfolo consisting of the following three stocks: E The volatility of the market portfol...
A: Beta is used as a measure of systematic risk in the CAPM model. It provides a direct relation betwee...
Q: ar Colfs tree cash fows are expected to grow by 8.% per year, what is the market value of s equity l...
A: EBIT = $22 Million Capital Expenditure = $6 Million Depreciation Expense = $3 Million Corporate tax ...
Zebra Corporation currently has 2,500,000 shares of stock outstanding that sell for RM45 per share. Assuming no market imperfections or tax effects exist, determine the share price be after . Determine the new number of shares outstanding when Zebra has a four-for-seven reverse stock split.
Step by step
Solved in 3 steps
- SoFi Technologies Inc. (SOFI) currently has 13 million shares of common stock outstanding and is selling for $215 a share. The company is planning to conduct a 5-for-1 stock split. If SOFI declares a 5-for-1 stock split, what will the price of the company’s stock be after the split—assuming that the total value of the firm’s stock remains the same before and after the split? How many shares of SOFI will be outstanding? Now imagine of instead of performing a stock split, SOFI decides to pay a stock dividend. If SOFI declares a 5.5% stock dividend, how many shares will the firm issue to existing shareholders? Now, in lieu of conducting a stock split or declaring a stock dividend, SOFI decides to buyback 1,500,000 shares of stock at market price. How much cash will it take to perform this buyback? Using the same information as Question #4, if SOFI performs the buyback, what should the new market share price be assuming the total value of the company hasn't changed? Round answer to…Bermuda Triangle Corporation (BTC) currently has 370,000 shares of stock outstanding that sell for $100 per share. Assume no market Imperfections or tax effects exist. Determine the share price and new number of shares outstanding if: (Do not round intermediate calculatlons. Round your prlce per share answers to 2 decimal places, e.g., 32.16, and shares outstanding answers to the nearest whole number, e.g., 32.) a. BTC has a five-for-three stock split. b. BTC has a 12 percent stock dividend. c. BTC has a 38.0 percent stock dividend. d. BTC has a four-for-seven reverse stock split. a. Price per share Shares outstanding b. Price per share Shares outstanding c. Price per share Shares outstanding d. Price per share Shares outstandingSimmons Mineral Operations, Inc., (SMO) currently has 430,000 shares of stock outstanding that sell for $50 per share. Assuming no market imperfections or tax effects exist, what will the share price be after: a. SMO has a four-for-three stock split? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) New share price $ b. SMO has a 10 percent stock dividend? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) New share price $ c. SMO has a 43.5 percent stock dividend? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) New share price $ d. SMO has a three-for-seven reverse stock split? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) New share price $ e. Determine the new number of shares outstanding in parts…
- Golden Inc. is considering one of the three following courses of action: (1) paying a $0.4 cash dividend, (2) distributing a 5% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $15 per share.The common stock of High Energy is selling for $58 a share. Currently, the firm has a total market value of $1,314,900 and a book value of $647,600. How many shares of stock will be outstanding if the firm does a stock split of five-for-two?Golden Valley Inc. is considering one of the three following courses of action: (1) paying a $0.5 cash dividend, (2) distributing a 4% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $14 per share.
- a) Zebra Corporation currently has 2,500,000 shares of stock outstanding that sell for RM45 per share. Assuming no market imperfections or tax effects exist, determine the share price be after: (i) Zebra has a six-for-two stock split.(ii) Zebra has a 17% stock dividend.(iii) Zebra has a 35% stock dividend.(iv) Zebra has a four-for-seven reverse stock split.(v) Determine the new number of shares outstanding in part (i) through (iv).(b) work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner. The scanner costs RM6,300,000 and it would be depreciated straight-line to zero over four years. You can lease it for RM1,745,000 per year for four years. Assume that the tax rate is 36%. You can borrow at 8% before taxes. Justify whether you should lease or buy.Your corporation currently has 200,000 shares of stock outstanding that sells for $50.00 per share. What will be the amount of shares outstanding and the share price after the reverse stock split. Please show your calculations in the space provided.Your corporation declared a three-for-six reverse stock split.A company with 825,000 shares outstanding sells for $120 per share announced a 5-for-6 reverse stock split. There are no market imperfections or tax effects, what will they sell the stock for after the split?
- Suppose you own 2,000 common shares of Laurence Incorporated. The EPSis $10.00, the DPS is $3.00, and the stock sells for $80 per share. Laurenceannounces a 2-for-1 split. Immediately after the split, how many shareswill you have, what will the adjusted EPS and DPS be, and what would youexpect the stock price to be?Stockton Mineral Operations (SMO) currently has 310,000 shares of stock outstanding that sell for $94 per share. Assume no market imperfections or tax effects exist. Determine the share price and new number of shares outstanding if: Note: Do not round intermediate calculations. Round your price per share answers to 2 decimal places, e.g., 32.16, and shares outstanding answers to the nearest whole number, e.g., 32. SMO has a five-for-three stock split. SMO has a 11 percent stock dividend. SMO has a 39.0 percent stock dividend. SMO has a four-for-seven reverse stock split.Dynatech Inc. is considering one of the three following courses of action: (1) paying a $0.40 cash dividend, (2) distributing a 6% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $13 per share. Help Dynatech make its decision by completing the following chart (treat each possibility independently): Total assets Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity Number of common shares Before Action $1,211,000 $ $262,000 $ 554,000 395,000 949,000 $1,211,000 100,000 $ (1) After Cash Dividend $ $ $ (2) After Stock Dividend $ $ $