Nik Syak Dental Berhad has net income of RM3,000,000 and it has 2,000,000 outstanding common shares. The company's share currently trades at RM45 a share. Nik Syak is considering a plan where it will use available cash to repurchase 30 percent of its shares in the open market. The repurchase is expected to have no effect on either net income or the company's P/E ratio. Calculate the firm's new share price.
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- Gamma Industries has net income of $3,800,000, and it has1,490,000 shares of common stock outstanding. The company’s stock currently trades at $67a share. Gamma is considering a plan in which it will use available cash to repurchase 10%of its shares in the open market at the current $67 stock price. The repurchase is expectedto have no effect on net income or the company’s P/E ratio. What will be its stock pricefollowing the stock repurchase?If iOS Corp. issues an additional $8 million of debt and uses this money to retire common stock, what will be the expected return on the stock? Assume that the change in capital structure does not affect the risk of the debt, and recall that the WACC under the initial capital structure is 13.85%. Enter your answer as a percentage. Do not include the percentage sign in your answer. Enter your answer rounded to 2 DECIMAL PLACES. TE= Number Click "Verify" to proceed to the next part of the question.Gamma Industries has net income of $300,000, and it has 1,875,000 shares of common stock outstanding. The company's stock currently trades at $42 a share. Gamma is considering a plan in which it will use available cash to repurchase 10% of its shares in the open market at the current $42 stock price. The repurchase is expected to have no effect on net income or the company's P/E ratio. What will be its stock price following the stock repurchase? Do not round intermediate calculations. Round your answer to the nearest cent. $
- Taco Time Corporation is evaluating an extra dividend versus a share repurchase. In either case, $22,960 would be spent. Current earnings are $3.80 per share, and the stock currently sells for $92 per share. There are 4,100 shares outstanding. Ignore taxes and other imperfections. What will the company’s EPS and PE ratio be under the two different scenarios?Taco Time Corporation is evaluating an extra dividend versus a share repurchase. In either case, $27,000 would be spent. Current earnings are $2.70 per share, and the stock currently sells for $96 per share. There are 4,500 shares outstanding. Ignore taxes and other imperfections. What will the company's EPS and PE ratio be under the two different scenarios? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. EPS PE Ratio Extra Dividend Share RepurchaseCorleone Collieries is deciding whether to pay out R60 000 in excess cash in the form of an extra dividend or a share repurchase. Current profits are R3,00 per share and the share sells for R30. Their abbreviated balance sheet before paying out the dividend is: Equity 240 000 Bank/cash 60 000 Debt 60 000 other assets 240 000 300 000 300 000 Evaluate each alternative (i.e.: pay the dividend or repurchase the shares) by: 1.1. Calculating the number of shares in issue. 1.2. The dividends per share (for the first alternative, i.e. pay the dividend) 1.3. Calculate: 1.3.1. The new share price. 1.3.2. The EPS 1.3.3. The price-earnings ratio
- Senten Ltd is deciding whether to pay out R60000 in excess cash in the form of an extra dividend or a share repurchase. Current profits are R 3.00 per share and the share sells for R 30. Their abbreviated balance sheet before paying out dividend is : R. Equity 240 000 Bank/cash 60000 Debt. 60000. Other assets 240 000 Total 300 000. 300 000 Evaluate each alternative (i.e pay the dividend or repurchase the shares) by calculating3.2.1 the number of shares in issue(5)3.2.2 the dividends per share (for the first alternative i.e pay the dividends. (5)3.2.3 calculate3.2.3.1 the new share price3.2.3.2 the Earnings per share EquityPukri Ltd is deciding whether to pay out R90 000 in excess cash in the form of an extra dividend or a share repurchase. Current profits are R2,40 per share and the share sells for R20. The abbreviated balance sheet before paying out the dividend is: Equity 240 000 Bank/cash 90 000 Debt 160 000 Other Assets 310 000 400 000 400 000 Evaluate each alternative (i.e: pay the dividend or repurchase the shares) by: 1.1 Calculating the number of shares in issue 1.2 The dividends per share (for the first alternative, i.e. pay the dividend) ( 1.3 Calculate: 1.3.1 The new share price 1.3.2 The EPS ( 1.3.3 The price-earnings ratioPukri Ltd is deciding whether to pay out R90 000 in excess cash in the form of an extra dividend or a share repurchase. Current profits are R2,40 per share and the share sells for R20. The abbreviated balance sheet before paying out the dividend is: Equity 240 000 Bank/cash 90 000 Debt 160 000 Other Assets 310 000 400 000 400 000 Evaluate each alternative (i.e: pay the dividend or repurchase the shares) by:1.2 The dividends per share (for the first alternative, i.e. pay the dividend)
- ABC SA. is financed solely by equity. Currently, the company has 20 million sharesoutstanding. These shares are listed in Euronext at 10€/share. The executive management teamannounced the aim of issuing 40 million euros in debt and using the proceeds to buy own shares(a share buyback program).a) What consequences on the market price do you anticipate, because of this announcement(provide the corresponding rationale for your answer)?b) How many shares can the company buy back with the proceeds from the debt issue?c) Following the change in financial structure, what will be the company’s market value (equityplus debt)?d) What level will the debt ratio reach after the change in financial structure?e) With this change in financial structure, is the cost of equity expected to increase, decrease,or stay at the same level? Justify.Beta Industries has net income of $2,000,000 and it has 1,000,000 shares of common stock outstanding. The company’s stock currently trades at $32 a share. Beta is considering a plan in which it will use available cash to repurchase 20% of its shares in the open market. The repurchase is expected to have no effect on either net income or the company’s P/E ratio. What will be its stock price following the stock repurchase?Pukri Ltd is deciding whether to pay out R90 000 in excess cash in the form of an extradividend or a share repurchase. Current profits are R2,40 per share and the share sells forR20. The abbreviated balance sheet before paying out the dividend is:Equity 240 000 Bank/cash 90 000Debt 160 000 Other Assets 310 000400 000 400 000Evaluate each alternative (i.e: pay the dividend or repurchase the shares) by:1.3 Calculate:1.3.1 The new share price