9-EZ Way has a market value equal to its book value. Currently, the firm has excess cash of $9000, other assets of $30,000 and equity of $15,000. The firm has 1,200 shares outstanding and net income of $1000.EZ Way has decided to spend one-third of its excess cash on a share repurchase program. How many shares of stock will be outstanding after the stock repurchase is completed? 10-What is the approximate yield to maturity for the following bonds? Assume these are bonds issued in the United States. a.5 years to maturity, 6 percent coupon rate, current price is $950. b.10 years to maturity, 0 percent coupon rate, current price is $339. c. 15 years to maturity, 8 percent coupon rate, current price is $1030. 11- A firm has only $10,000 to invest and must choose between two projects. Project A returns $12,400 after a year while project B pays $15,609 after three years. If management wants to select the investment with the higher return, which alternative should be chosen?

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Apple has 200 shares outstanding. It earns $2,000 per year and expects to pay all of it as dividends. If the firm expects to maintain this dividend forever, calculate the stock price after the dividend payment. (The required rate of return is 5 percent.) $210 $200 24190 $195

The Cincinnati Chili Kitchen has just announced the repurchase of $140,000 of its stock. The company has 42,000 shares outstanding and earnings per share of $3.35. The company stock is currently selling for $76.48 per share. What is the price-earnings ratio after the repurchase?

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House of Haddock has 5,060 shares outstanding and the stock price is $146. The company is expected to pay a dividend of $26 per share next year and thereafter the dividend is expected to grow indefinitely by 3% a year. The president, George Mullet, now makes a surprise announcement: He says that the company will henceforth distribute half the cash in the form of dividends and the remainder will be used to repurchase stock. The repurchased stock will not be entitled to the dividend. a-1. What is the total value of the company before the announcement? a-2. What is the total value of the company after the announcement? a-3. What is the value of one share? b. What is the expected stream of dividends per share for an investor who plans to retain his shares rather than sell them back to the company? Check your estimate of share value by discounting this stream of dividends per share. Complete this question by entering your answers in the tabs below. Req A1 to A3 Req B a-1. What is the total…

11. Luther is a successful logistical services firm that currently has $5 billion in cash. Luther has decided to use this cash to repurchase shares from its investors, and has already announced the stock repurchase plan. Currently Luther is an all-equity firm with 1.25 billion shares outstanding. Luther's shares are currently trading at $20 per share.  After the repurchase how many shares will Luther have outstanding (in billion shares)?

25-The Engineering Company currently has 100,000 outstanding stocks selling at OMR 100 each. The firm is also thinking of declaring a dividend of OMR 5 per share at the end of the current fiscal year. The firms opportunity cost of capital is 10%. What will be price of the stock at the end of the year assume that dividend is declared under MM model? a. OMR 115 b. OMR 100 c. OMR 105 d. OMR 110

n Tina Black's Fabrics is currently an all equity firm that has 15,000 shares of stock outstanding at a market price of $12.50 a share. Company management has decided to issue $60,000 worth of debt and use the funds to repurchase shares of the outstanding stock at the market price. The interest rate on the debt will be 7%. Ignoring taxes, what is the earnings per share (EPS) at the break-even level of earnings before interest and taxes (EBIT)? O A. O B. O D. $1.143 O C. $1.500 SOE. $1.125 $0.875 $0.667 27/

The Cincinnati Chili Kitchen has just announced the repurchase of $155,000 of its stock. The company has 45,000 shares outstanding and earnings per share of $3.41. The company stock is currently selling for $76.87 per share. What is the price–earnings ratio after the repurchase? Multiple Choice 21.53 times 23.55 times 22.54 times 23.05 times 20.92 times