Beta Co. currently has 1 million shares outstanding each selling for $50. It is contemplating a 2-for-1 stock split. The firm believes that its total market value would remain constant after the split. 1. What is the Beta's expected price after the split?* 3 points O a. $75 per share O b. $100 per share O c. $25 per share d. $30 per share O e. None of the above

Beta Co. currently has 1 million shares outstanding each selling for $50. It is contemplating a 2-for-1 stock split. The firm believes that its total market value would remain constant after the split. 1. What is the Beta's expected price after the split?* 3 points O a. $75 per share O b. $100 per share O c. $25 per share d. $30 per share O e. None of the above

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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You believe the price of Freeze Frame Co. stock is going to fall, so you short 1,000 shares at a price of $57. The initial margin is 55 percent. Ignore dividends. a. Construct the equity balance sheet for the original trade b. Construct equity balance sheets for a stock price of $52 per share c. What is your effective annual return if you cover your short position at this price in five months? d, What is your margin?
Give typing answer with explanation and conclusion A share of common stock is paying $3.50 per share, but the corporation only pays 40% of its earnings as cash dividends. The anticipated growth of this stock is 8%. Find the value of this stock if an investor wants a yield of 10%. If the stock is selling for $45, what is the expected yield?
You believe that Rose, Incorporated, stock is going to fall and you've decided to sell 900 shares short. If the current share price is $52, construct the equity account balance sheet for this trade. Assume the initial margin is 65 percent. Note: Do not round intermediate calculations. Input all amounts as positive values. Assets Proceeds from sale Initial margin deposit Total Liabilities and account equity Short position Account equity Total
Caspian Water needs to raise $59.00 million by issuing additional shares of stock. If the market estimates Caspian Water will pay a dividend of $2.12 next year (D1 2.12), which will grow at 3.99% forever and the cost of equity to be 12.82%then how many shares of stock must the firm sell? 1 ) None of the answers in this list is within 100 shares of the correct answer 2) 312,890 3) 2,457,406 4 ) 4,128,970 5 ) 915,939 6 ) 2.975,934
Bailey's has a preferred share issue outstanding with a current price of $26.57 per share and a par value of $25. The firm is expected to pay a dividend of $1.86 per share a year from today. What would be the cost of issuing new shares of preferred equity? (Round your final answer to the nearest percentage.) O 7.44% O 6.50% O 7.00% O 8.00%
The current market price for common shares of Delta Company is $30. Call options on these shares currently trade at $2.35, and come with a $46.35 exercise price. If the stock’s market price rose to $51 what would be the percentage rate of return? give a rounded number looking like this 100.4 that is not the right answer
Need the answer of the following question
A stock sells at $15 per share. a. What is the EPS for the company if it has a P/E ratio of 20? Round your answer to the nearest cent. $ b. If the company's dividend yield is 4 percent, what is its dividend per share? Round your answer to the nearest cent. $ c. What is the book value of the company if the price-to-book ratio is 1.5 and it has 400,000 shares of stock outstanding? Round your answer to the nearest dollar. $
Malbar Gold has a preferred share issue outstanding with a current price of OMR 20.50 . The firm is expected to pay a dividend of OMR 2,50 per share a year from today . If the floatation cost is 3 % what is the firm's cost of preferred equity ? Select one A. None of these B. 17.42 C. 10.44 D. 13.50
Help me please get the correct solution option match
Using excel
Suppose the risk-free rate is 2.60% and an analyst assumes a market risk premium of 5.93%. Firm A just paid a dividend of $1.40 per share. The analyst estimates the 3 of Firm A to be 1.48 and estimates the dividend growth rate to be 4.94% forever. Firm A has 268.00 million shares outstanding. Firm B just paid a dividend of $1.93 per share. The analyst estimates the ß of Firm B to be 0.79 and believes that dividends will grow at 2.37% forever. Firm B has 194.00 million shares outstanding. What is the value of Firm A? Submit Answer format: Currency: Round to: 2 decimal places.

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