Answered: Answer the following as indicated.…

Answer the following as indicated. (Format: problem, then, solution) 6. Calculate the dividends paid to a stockholder who has 120 shares of stocks that is paying P30 per share.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Answer the following as indicated. (Format: problem, then, solution)
6. Calculate the dividends paid to a stockholder who has 120 shares of stocks that
is paying P30 per share.

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The Royal Gold’s stock currently sells for RM 90 per share. The firm issued rights to raise new equity. To purchase a new share, a stockholder must remit RM 25 and four rights. (Tip: use ratio perspective to approximate the share of quantity.) (a) Compute the ex-rights stock price.
The Royal Gold’s stock currently sells for RM 90 per share. The firm issued rights to raise new equity. To purchase a new share, a stockholder must remit RM 25 and four rights. (Tip: use ratio perspective to approximate the share of quantity.) (a) Calculate the price of one right.
Your corporation has declared a cash dividend of $5.00 per share. Before the cash dividend the stock was selling for $60.00 per share. When the stock goes ex-dividend what will the price per share be? Please show your calculations in the space provided.What would the ex-dividend price per share be?
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need part b
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A certain land developer declared a dividend of 32 pesos per share for the common stock. If the common stock closes 105 pesos, how large is the stock yield ratio on this investment? (Show your complete solution. Then, encircle your final answer.)
Q2.A company with a stock priced at $50 must be worth more than a company with a stock priced at $5. True False
The answer to B is incorrect. Does the dividend yield need to be factored in?
If a company declares a $0.30 dividend and you own 100 shares, how much dividends will you receive?
Assume that you own 60 shares of common stock of a company, that you have been receiving cash dividends of $5 per share per year, and that the company has a 6-for-5 stock split Required: a. How many shares of common stock will you own after the stock split? b. What new cash dividend per share amount will result in the same total dividend income as you received before the stock split? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. c. What stock dividend percentage could have accomplished the same end result as the 6-for-5 stock split? a. Shares of common stock b. New cash dividend c. Stock dividend per share. %
are my answers correct? if yes help me understand how the computation of answers were arrived at Answer 3.2.1) Calculate the number of shares in issue =240000/30 =8000shares Answer 3.2.2) The dividend per share =60000/8000 = 7.5 per shares Answer 3.2.3) The new share price IN CASE OF DIVIDEND PAYMENT share price = (240000 - 60000)/8000 = 22.5 per share IN CASE OF SHARE REPURCHASE No of shares repurchased = 60000/30 = 2000 shares new number of shares = 8000 - 2000 = 6000 shares new net worth of the company = 240000-60000 = 180000 therefore new share price = 180000/ 6000 = 30 per share 2) Earnings per share (EPS) IN CASE OF DIVIDEND PAYMENT Since the number of shares are not reducing EPS will remain same at 3 per share IN CASE OF SHARE REPURCHASE EPS = (8000*3)/6000 = 4 per share 3)…

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