Sammy's Sportshops has been very profitable in recent years and has seen its stock price steadily increase to over $100 per share. The CFO thinks the company should consider either a 100% stock dividend or a 2-for-1 stock split.

House of Haddock has 5,060 shares outstanding and the stock price is $146. The company is expected to pay a dividend of $26 per share next year and thereafter the dividend is expected to grow indefinitely by 3% a year. The president, George Mullet, now makes a surprise announcement: He says that the company will henceforth distribute half the cash in the form of dividends and the remainder will be used to repurchase stock. The repurchased stock will not be entitled to the dividend. a-1. What is the total value of the company before the announcement? a-2. What is the total value of the company after the announcement? a-3. What is the value of one share? b. What is the expected stream of dividends per share for an investor who plans to retain his shares rather than sell them back to the company? Check your estimate of share value by discounting this stream of dividends per share. Complete this question by entering your answers in the tabs below. Req A1 to A3 Req B a-1. What is the total…

The Athletic Village has done very well the past year, and its stock price is now trading at $94 per share. Management is considering either a 100% stock dividend or a 2-for-1 stock split. Required: Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders' equity accounts, shares outstanding, par value, and share price. (Round "Par value per share" to 3 decimal places.) Common stock, $0.01 par value Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Shares outstanding Par value per share Share price $ $ $ $ Before 10 30,990 31,000 15,600 46,600 1,000 0.01 94 After 100% Stock Dividend After 2-for-1 Stock Split

MyTel Corp, an Internet service provider, has prospered during the past seven years, and recently the company's share price has shot up to $248.00. MyTel's management wishes to decrease the share price to the range of $106.00 to $129.00, which will be attractive to more investors. Should the company issue a 100 percent stock dividend or split the stock? Why? If you propose a stock spilt, state the split ratio that will accomplish the company's objective. Show your computations. COD The company has two options: to split the stock or to issue a 100% stock dividend. If it uses a 2-for-1 stock split ratio, then both options will decrease the company's stock price to $

Circuit City Stores (CC) recently paid a $.16 dividend. The dividend is expected to grow at a 23 percent rate. At the current stock price of $7.96, what is the return shareholders are expecting?

The Athletic Village has done very well the past year, and its stock price is now trading at $80 per share. Management is considering either a 100% stock dividend or a 2-for-1 stock split.   Required: Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders’ equity accounts, shares outstanding, par value, and share price. (Round "Par value per share" to 3 decimal places.)       Before After 100% Stock Dividend After 2-for-1 Stock Split Common stock, $0.01 par value $12     Additional paid-in capital 23,990     Total paid-in capital 24,002     Retained earnings 14,900     Total stockholders' equity $38,902     Shares outstanding 1,200     Par value per share $0.01     Share price $80

A publicly-traded company that manufactures medical supplies wishes to evaluate its overall performance on the market compared to its competitors. Their beginning stock price for the year was $3.78 per share. Their ending stock price was 5.48 per share and the average price per share was 4.63. They paid 1.30 in dividends to each share with a growth rate of 5%. What is their total shareholder return rate?

After unexpectedly hosting an event for an out-of-favour political candidate, Four Seasons Total Landscaping expects to see its profits steadily decline each year going forward. Having recently paid its annual dividend of $$21.2521.25 per share, shares of Four Seasons Total Landscaping currently trade at a market price of $$77.0277.02 each. After analysing its business, you determine that the appropriate cost of equity capital for the firm is 18.118.1% per annum due to relatively high levels of fixed costs and debt financing. Based on the above information, at what rate per annum does the market seem to believe that the dividends of Four Seasons Total Landscaping will decrease? The annual dividends are expected to decline in size by % per annum.(Round to FOUR decimal places)