(13)Hors d’Age Cheeseworks has been paying a regular cash dividend of $4 per share each year for more than a decade. The company is paying out all its earnings as dividends and is not expected to grow. There are 100,000 shares outstanding selling for $80 per share. The company has sufficient cash on hand to pay the next annual dividend. Suppose that, starting in year 1, Hors d’Age decides to cut its cash dividend to zero and announces that it will repurchase shares instead. What is the immediate stock price reaction? Ignore taxes, and assume that the repurchase program conveys no information about operating profitability or business risk. And how many shares will Hors d’Age purchase?

Ketchup Corporation is currently trading at $40 per share. There are 0.5 million shares outstanding, and the company has no debt. You believe that the value of the company would increase by 20% over 1 year if the management were replaced. How much would you gain from acquiring 60% of Ketchup's shares by getting a 1-year, 10%-interest loan? Hint: you are not using your own money. The money for the investment comes from the loan. $4,000,000.   $0.   $2,400,000.   $1,320,000.   $1,200,000.

1. Maxwell Mining Company's ore reserves are being depleted, so its sales are falling. Also, because its pit is getting deeper each year, its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 5% per year. If D0 = $3 and rs = 13%, what is the value of Maxwell Mining's stock? Round your answer to the nearest cent. =   $   2. Earley Corporation issued perpetual preferred stock with a 12% annual dividend. The stock currently yields 8%, and its par value is $100. Round your answers to the nearest cent. a.What is the stock's value?    =   $  b. Suppose interest rates rise and pull the preferred stock's yield up to 14%. What is its new market value?    =   $

Maxwell Mining Company's ore reserves are being depleted, so its sales are falling. Also, because its pit is getting deeper each year, its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 8% per year. If Do $5 and rs = 17%, what is the value of Maxwell Mining's stock? Round your answer to the nearest cent. $