Calculate the repurchase price and total payout for 2019 and 2018?Dividend payout for 2019 is 25.57% and 23.07% for 2018 Shares of Common StockThe following table shows the changes in shares of common stock for 2019, 2018 and 2017 (in thousands):Common stock outstanding, beginning balancesCommon stock repurchasedCommon stock issued, net of shares withheld for employee taxesCommon stock outstanding, ending balances20194,754,986(345,205)33,4554,443,23620185,126,201(405,549)34,3344,754,986 Net incomeOther comprehensive income/(loss):Change in foreign currency translation, net of taxChange in unrealized gains/losses on derivative instruments, net of tax:Change in fair value of derivativesAdjustment for net (gains)/losses realized and included in net incomeTotal change in unrealized gains/losses on derivative instrumentsChange in unrealized gains/losses on marketable securities, net of tax:Change in fair value of marketable securitiesAdjustment for net (gains)/losses realized and included in net incomeTotal change in unrealized gains/losses on marketable securitiesTotal other comprehensive income/(loss)Total comprehensive income$$September 28,201955,256(408)(661)23(638)3,802253,8272,78158,037$$September 29,201859,531(525)523382905(3,407)1(3,406)(3,026)56,505

Share Repurchase Price: Share repurchase price, also known as the buyback price, refers to the price…

Answered: Calculate the repurchase price and…

Calculate the repurchase price and total payout for 2019 and 2018? Dividend payout for 2019 is 25.57% and 23.07% for 2018

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter7: Financial Activities

Section: Chapter Questions

Problem 2EIC

See similar textbooks

Related questions

Q: You have purchased 1 million shares in a restaurant chain venture. At this zero-stage investment,…

A: a.The number of shares you need to sell= additional investment required÷price per shareThe fraction…

Q: FedEx Corporation (FDX) has a current share price of $157.56 and is expected to have earnings per…

A: PE ratio of FDX stock= Price of FDX stock / EPS of FDX stock= 157.56/11.04= 14.27173913

Q: Problem 13-9 Preferred stock In 2021, Beta Corporation earned gross profits of $820,000. a. Suppose…

A: The company considers its debt as a loan, allowing for tax deductions on the interest payments.…

Q: Returns on mutual fund are calculated using predictions of yields. True False

A: False. Returns on mutual funds are typically calculated based on the actual performance of the…

Q: The six-month zero rate is 8% per annum with semiannual compounding. The price of a one-year bond…

A: The future value of an investment or loan can be calculated using continuous compounding, a…

Q: Suppose that the value of the S&P 500 stock index is 4,800. Required: a. If each E-mini futures…

A: Futures contracts are standardized financial agreements traded on organized exchanges, obligating…

Q: If the tax rate is 23 percent, what is the NPV of the new plant? Note: A negative answer should be…

A: Net present value (NPV):Net present value (NPV) is a financial metric used to evaluate the…

Q: arr Company is considering a project that has the following cash flow data. What is the project's…

A: IRR is one of the most used method of capital budgeting based on the time value of money and net…

Q: Industries can reduce its operating expenses so that EBIT becomes 12% of sales, by how much will its…

A: The value of a company is the sum of all its marketable assets. The Modigliani-Miller proportion…

Q: Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed…

A: Variables in the question: Sales revenue=$20 millionOperating costs=$16 millionInterest expense=$ 1…

Q: 1000 par value bond with a term of 5years and a coupon rate of 6% payable semiannually is purchased…

A: Price of bond is the present value of coupon payment plus present value of the par value of the bond…

Q: Use the table for the question(s) below. FCF Forecast ($ million) Year Sales 0 240 1 270 Growth…

A: We need to use free cash flow approach for valuation of share price.WhereFCF1,FCF2... are free cash…

Q: King, Incorporated, has debt outstanding with a face value of $5.6 million. The value of the firm if…

A: Debt outstanding = $5,600,000Value of equity = $25,200,000Outstanding Stock = 395,000Price Per Share…

Q: Investing: Lesser-Known Stocks The following question is based on the following information about…

A: Investing in stock involves purchasing ownership in a company represented by shares or stocks. As a…

Q: The Loughran Corporation has issued zero-coupon corporate bonds with a five-year maturity. Investors…

A: Expected maturity value = [100*(1-default rate)] + [100 * default rate*Percentage receivable on…

Q: You have purchased 1 million shares in a restaurant chain venture. At this zero-stage investment,…

A: Number of shares =1,000,000Price per share = 0.50Additional value of shares…

Q: O 2. Rahim bought 8 kg 250 g mangoes, 2 kg 500 g apples and 1 kg 200 9 grapes from a fruit-seller.…

A: 2) Mangoes = 8.25 kgApples = 2.50 kgGrapes = 1.20 kg3) Boy 1 = 45.50 kgBoy 2 = 48.00 kgBoy 3 = 38.20…

Q: Homeowners 3 (Special Form) is an all-risks policy that insures the dwelling and other structures…

A: Homeowners 3 (Special Form) is a comprehensive insurance policy designed to protect homeowners from…

Q: Bob Jones bought a new log cabin for $65,000 at 11% interest for 30 years. Prepare an amortization…

A: A mortgage refers to a covered loan that is borrowed for the purchase of a property which itself…

Q: The management of Unter Corporation, an architectural design firm, is considering an investment with…

A: The payback period is a financial metric that calculates the time needed to recoup an initial…

Q: Use the table for the question(s) below. Name Gannet New York Times McClatchy Media General Lee…

A: 1.P/E ratio means price earnings ratio .It is calculated as follows:-P/E ratio =2.Value of equity is…

Q: Calculate the annual rate of return for the new machine. (Round calculations in percentages to 2…

A: IRR (Internal Rate of Return)IRR is the discount rate at which the net present value (NPV) of cash…

Q: In January 2020, three-month (91-day) Treasury bills were selling at a discount of 1.58%. What was…

A: Annual yield refers to the annual return expected by an investor for the investment, over the year.

Q: A retailer is looking to expand operations at all of their stores for an initial investment of $840.…

A: Initial investment$840Useful life10Cash inflow$540Cash outflow$310Tax rate32%Required return15%

Q: Steinberg Corporation and Dietrich Corporation are identical firms except that Dietrich is more…

A: Steinberg:ExpansionRecessionEBIT$3,100,000$51,500,000Payoff to debt…

Q: Jon Fulkerson, a credit analyst at the True Credit bank, has received a credit application from…

A: We need to use Altman Z score formula for Private General Non-Manufacturing Services…

Q: Tuttle Enterprises is considering a project that has the following cash flow and WACC data. What is…

A: NPV is also known as Net Present Value.. It is a capital budgeting technique which helps in decision…

Q: A portfolio has a variance of .0139, a beta of 1.13, and an expected return of 13.93%. What is the…

A: Sharpe ratio is computed by following formula:-Sharpe ratio = whereRp= expected return of…

Q: Assume the market value of Ford's equity, preferred stock and debt are $8 billion, $3 billion and…

A: Cost of Equity is calculated by Capital Asset Pricing Model..Cost of Equity Ke = Risk free rate +…

Q: Which of the following measures the total risk of a portfolio? A. Standard Deviation B.…

A: The objective of the question is to identify the correct measure that quantifies the total risk of a…

Q: (a) Both depreciation and interest on borrowed money are by default in then-current form and thus,…

A: "Since you have posted multiple questions with multiple sub parts, we will provide the solution…

Q: Assume the total market value of General Motors (GM)’s capital structure is $10 billion. GM has a…

A: WACC is also known as Weighted Average Cost of Capital. It includes the cost of debt & cost of…

Q: Stock-for-Stock Offer Dubon Inc. is considering the acquisition of the smaller Wells Co. Dubon has…

A: During a merger, instead of buying the shares for cash, the companies may provide stock for buying…

Q: Danali Corporation has 2,500,000 shares of common stock outstanding Danall has a 15-member board,…

A: Stockholders, also known as shareholders, are individuals or entities that hold shares of a…

Q: A store has 5 years remaining on its lease in a mall. Rent is $2,100 per month, 60 payments remain,…

A: old lease facts: 5 years remaining casflow -2000 per month at end of period, 60 paymentsnew lease:…

Q: Blaylock Company wants to buy a numerically controlled (NC) machine to be used in producing…

A: IRR stands for Internal Rate of Return. It is a financial metric used to measure the profitability…

Q: Suppose that at the present time, one can enter 5-year swaps that exchange SOFR for 4%. An…

A: Notional principal= 110,000,000*(8%-4%)= 110,000,000*4% = 4400000Present Value can be calculated…

Q: Assume Ford Motor Company is discussing new ways to recapitalize the firm and raise additional…

A: WACC is also known as weighted average cost of capital. It includes the cost of debt & cost of…

Q: For an unlevered firm, the cost of capital can be determined by using the ________. A.…

A: The objective of the question is to identify the correct method to determine the cost of capital for…

Q: How many of their products do they need to sell to break even financially?

A: To calculate the break-even point in units, you can use the following formula:

Q: When a defined benefit pension fund has assets whose value is below the present value of its…

A: When a defined benefit pension fund has assets whose value is below the present value of its…

Q: Kim's Bridal Shoppe has 12,400 shares of common stock outstanding at a price of $58 per share. It…

A: There are three sources of finance in the firm. These are common stock preferred stock and bonds. It…

Q: eases 3 years Create a table with: interest ranging from 0% o 50% increasing by 5% increments NPV…

A: Net present value is determined by deducting the initial investment from the current value of cash…

Q: Suppose the call option of Tesla company has an exercise price of $200 and expires in 90 days.…

A: Here,Spot Price is $240Strike Price is $200Risk Free Rate is 6.18%Standard Deviation is 40%Time to…

Q: Hooper Chemical Company, a major chemical firm that uses such raw materials as carbon and petroleum…

A: State of economyOutcomesProbabilityRecession$200.30Normal economy$400.40Strong economy$600.30

Q: Carmax, Inc. common stock currently sells for $95.89 per share, and the standard deviation of…

A: The gamma for a company refers to the measure of the change in the delta of the option on the…

Q: These calculations are repeated for every month of the project. Cash Flow Statement Bought Forward…

A: Cash Flow Statement Bought Forward January February March April MayJune: $5,000Income: $10,000Total$…

Q: Western Company is preparing a cash budget for June. The company has $10,400 in cash at the…

A: Cash budget important forecast and analytical tool that is used in finance know the total working…

Q: Jim Angel holds a $200,000 portfolio consisting of the following stocks: Stock…

A: The objective of the question is to calculate the beta of a portfolio. Beta is a measure of the…

Q: Ford Motor Company had realized returns of 15%, 25%, - 10%, and - 15% over four quarters. What is…

A: Mean = Sum of All returns / Number of quartersDeviation from Mean = Return - Arithmetic meanSquared…

Question

Calculate the repurchase price and total payout for 2019 and 2018?

Dividend payout for 2019 is 25.57% and 23.07% for 2018

Shares of Common Stock
The following table shows the changes in shares of common stock for 2019, 2018 and 2017 (in thousands):
Common stock outstanding, beginning balances
Common stock repurchased
Common stock issued, net of shares withheld for employee taxes
Common stock outstanding, ending balances
2019
4,754,986
(345,205)
33,455
4,443,236
2018
5,126,201
(405,549)
34,334
4,754,986

Net income
Other comprehensive income/(loss):
Change in foreign currency translation, net of tax
Change in unrealized gains/losses on derivative instruments, net of tax:
Change in fair value of derivatives
Adjustment for net (gains)/losses realized and included in net income
Total change in unrealized gains/losses on derivative instruments
Change in unrealized gains/losses on marketable securities, net of tax:
Change in fair value of marketable securities
Adjustment for net (gains)/losses realized and included in net income
Total change in unrealized gains/losses on marketable securities
Total other comprehensive income/(loss)
Total comprehensive income
$
$
September 28,
2019
55,256
(408)
(661)
23
(638)
3,802
25
3,827
2,781
58,037
$
$
September 29,
2018
59,531
(525)
523
382
905
(3,407)
1
(3,406)
(3,026)
56,505

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction to Share Repurchase Price and Dividend Payout

VIEW

Step 2: Repurchase Share Price and Total Dividend Payout Calculation

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

How should exchange gains or losses resulting from foreign currency transactions be accounted for? Included as component of income from continuing operations for the period in which the rate changes. Included as component of other comprehensive income for the period in which the rate changes. Included in the statement of financial position as a deferred item. Included in net earnings for gains, but deferred for losses.
Comprehensive income includes items not included in the computation of net income, such as foreign currency translation adjustments and unrealized gains and losses on available-for-sale securities. True False
Which of the following is NOT a component of Accumulated Other Comprehensive Income? A. Gains or losses on Treasury Stock B. Unrealized holding gains or losses on available-for-sale securities C. Gains or losses from foreign currency translation adjustments D. Gains or losses related to post retirement benefit plans (pensions)
Comprehensive income comprises factors that are not included in net income, such as foreign currency translation adjustments and unrealized gains and losses on available-for-sale securities. True False
Problem : How are revenues related to current assets? In regards to exchange rates, what's the Difference between a direct quote and an Indirect quote?
8. Imposed on dividend, interest, and royalty payments to foreign investors. This is: a. Border tax b. Transfer tax c. Withholding tax d. Value-added tax.
Which of the following items will result to foreign currency transaction gain/loss due to settlement or remeasurement? Foreign currency denominated non-monetary liabilities such as unearned revenue, warranty liability, premium liability and deferred tax liability. Foreign currency denominated non-monetary assets such as inventory, PPE, intangible asset or prepaid asset. Foreign currency denominated monetary items such as accounts payable, accounts receivable, notes payable, loans receivable or interest payable. Foreign currency denominated income statement accounts such as revenue, income, expense or loss.
Forex difference arising from translating foreign currency denominated transactions to functional currency shall be recognized in Group of answer choices Other comprehensive income with classification adjustment Other comprehensive income without reclassification adjustment Retained earnings Profit and loss
Which statement is correct regarding fair value hedges and cash flow hedges of a foreign currency asset or liability. a. revaluation of a cash flow hedge is reported in the income statement b. under a cash flow hedge the difference between the revaluation gain and loss on the hedge and the revaluation gain or loss on the item being hedged is reported in Other Comprehensive Income c. under a cash flow hedge the difference between the revaluation gain or loss on the hedge and the revaluation gain or loss on the item being hedged is reported in the income statement d. a. revaluation of a fair value hedge is reported in Other Comprehensive Income e. under a fair value hedge the difference between the revaluation gain or loss on the hedge and the revaluation gain or loss on the item being hedged is reported in Other Comprehensive Income
What is the current market view on EUR/USD? (Will it appreciate or depreciate? and why?)
The translation (remeasurement) adjustment reported in a translation when the functional currency is not the foreign currency is included a. as a separate component of other comprehensive income b. in the current liability section of the balance sheet as deferred revenue c. in the calculation of net income d. none of the above
Which of the following costs may not be eligible for capitalization as borrowing costs under PAS 23? * Interest on bonds issued to finance the construction of a qualifying asset. Exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to interest costs pertaining to a qualifying asset. Amortization of discounts or premiums relating to borrowings that qualify for capitalization. Imputed cost of equity.