Dividend Year per share 1995 Total dividends 0.25 $1,075,000.00 1996 0.25 $1,075,000.00 share from share Total payments repurchases repurchases to shareholders 115,000 $140,000.00 $0.00 $1,075,000.00 $1,215,000.00 1997 0.3 $1,255,500.00 0 $0.00 $1,255,500.00 1998 1999 2000 2001 2002 0.31 $1,297,350.00 0.35 $1,394,750.00 0.37 $1,430,050.00 0.39 $1,507,350.00 0.42 $1,623,300.00 200,000 $260,000.00 120,000 $180,000.00 0 $1,557,350.00 $1,574,750.00 $0.00 $1,430,050.00 0 120,000 $220,000.00 $0.00 $1,507,350.00 $1,843,300.00 Share price, end of 2002 1.83 Number of shares 3,745,000 Cinema Market Value Dividend compound growth rate Cost of equity, re

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 99.4C
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Question
Dividend
2
Year
per share
3
1995
4
1996
Total
dividends
0.25 $1,075,000.00
0.25 $1,075,000.00
0
share
repurchases repurchases to shareholders
$0.00
from share Total payments
$1,075,000.00
115,000 $140,000.00
$1,215,000.00
5
1997
0.3 $1,255,500.00
0
$0.00
$1,255,500.00
6
1998
7
1999
8
2000
0.31 $1,297,350.00
0.35 $1,394,750.00
0.37 $1,430,050.00
200,000 $260,000.00
120,000 $180,000.00
$1,557,350.00
$1,574,750.00
0
$0.00
$1,430,050.00
9
2001
10
2002
0.39 $1,507,350.00
0.42 $1,623,300.00
0
$0.00
$1,507,350.00
120,000 $220,000.00
$1,843,300.00
11
12 Share price, end of 2002
13 Number of shares
14 Cinema Market Value
15
16 Dividend compound growth rate
17 Cost of equity, re
1.83
3,745,000
Transcribed Image Text:Dividend 2 Year per share 3 1995 4 1996 Total dividends 0.25 $1,075,000.00 0.25 $1,075,000.00 0 share repurchases repurchases to shareholders $0.00 from share Total payments $1,075,000.00 115,000 $140,000.00 $1,215,000.00 5 1997 0.3 $1,255,500.00 0 $0.00 $1,255,500.00 6 1998 7 1999 8 2000 0.31 $1,297,350.00 0.35 $1,394,750.00 0.37 $1,430,050.00 200,000 $260,000.00 120,000 $180,000.00 $1,557,350.00 $1,574,750.00 0 $0.00 $1,430,050.00 9 2001 10 2002 0.39 $1,507,350.00 0.42 $1,623,300.00 0 $0.00 $1,507,350.00 120,000 $220,000.00 $1,843,300.00 11 12 Share price, end of 2002 13 Number of shares 14 Cinema Market Value 15 16 Dividend compound growth rate 17 Cost of equity, re 1.83 3,745,000
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