Module 6 Question 8 ​(Dividend irrelevance of the timing of cash​ dividends)   The Caraway Seed Company sells specialty gardening seeds and products primarily to​ mail-order and Internet customers. The firm has $200,000available for distribution as a cash dividend immediately and plans to shut down its business at the end of one​ year, at which time it will be prepared to pay a liquidating dividend of ​$1.20 million to the​ firm's stockholders. The​ firm's shareholders require a 10.0 percent rate of return for investing in the​ all-equity-financed firm.   a.  What do you estimate the value of​ Caraway's equity to be today if it pays out a ​$200,000 cash dividend today and plans to pay a ​$1.20 million liquidating dividend at the end of the​ year? b If​ Caraway's board of directors decides to pay a ​$600,000 dividend today to its existing shareholders using an equity offering selling new shares of common stock to raise the additional ​$400,000 it needs to make the cash​ dividend, what will be the value of the existing shares of​ stock? The new​ shares?       Question content area bottom Part 1 a.  The value of​ Caraway's equity today if it pays out a ​$200,000 cash dividend today and plans to pay a ​$1.20 million liquidating dividend at the end of the year is ​$______ .

Problem 2-25 Calculating Short Sale Returns (LO4, CFA3) You just sold short 850 shares of Wetscope, Incorporated, a fledgling software firm, at $60 per share. You cover your short when the price hits $50.50 per share one year later. If the company paid $0.67 per share in dividends over this period, what is your rate of return on the investment? Assume an initial margin of 55 percent. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Rate of return %

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Fedsmoker Protocols Fedsmoker Protocols has $216.00 million of excess cash. The firm has no debt and has 800 million shares outstanding with a current market price of $10.40 per share. Fedsmoker's board of directors has decided to pay out this cash to its shareholders as a special, one-time dividend. Fedsmoker Protocols exists in a world with perfect capital markets. That is, you may assume that there are no flotation costs associated with raising new capital and that there are no transaction costs (such as brokerage fees) associated with the trading of shares. In addition, you may assume that there are no taxes (or, at least, there is no difference between the tax rate on dividends and the tax rate on capital gains). A) Given the above information, what should be the ex-dividend price for each one of Fedsmoker Protocols' shares? (Round answer to 2 decimal places. Use the unrounded value in any future calculations that need it) $4 per share B) If the board instead decided to use the…