Ten years ago, Cullumber Ltd., issued 703,800 shares, which are still outstanding, for a total value of $4.86 million. The board of directors for Cullumber Ltd. has become concerned with the dramatic drop in the market price of the shares to $0.30 per share. The company is at risk of being delisted if the share price drops below $0.25 per share (a) Your answer is correct. What would be the required reverse stock split to move the market price to $6.90 per share?

Ten years ago, Cullumber Ltd., issued 703,800 shares, which are still outstanding, for a total value of $4.86 million. The board of directors for Cullumber Ltd. has become concerned with the dramatic drop in the market price of the shares to $0.30 per share. The company is at risk of being delisted if the share price drops below $0.25 per share (a) Your answer is correct. What would be the required reverse stock split to move the market price to $6.90 per share?

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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What are the expected returns of stock "A" and "B"? Enter your answers as a percentage. Do not put the percent sign in your answers. Round your answers to 2 DECIMAL PLACES.\\n \\nE(ra)= \\nCorrect response: 4.52\\\\pm 0.01\\nE(rb)= \\nCorrect response: 6.04\\\\pm 0.01\\n \\nClick "Verify" to proceed to the next part of the question.\\nThis questions has 4 parts (i.e., you will be clicking "Verify" 4 times)\\n \\n \\n \\n\\n \\n \\nWhat are the standard deviations of stocks "A" and "B"? Enter your answers as a percentage. Do not put the percent sign in your answers. Round your answers to 2 DECIMAL PLACES.\\n \\nSDa= \\nCorrect response: 8.49\\\\pm 0.01\\nSDb= \\nCorrect response: 13.06\\\\pm 0.01\\n \\nClick "Verify" to proceed to the next part of the question.\\n \\n \\n \\n \\n \\n \\nWhat is the expected return of the portfolio? Enter your answer as a percentage. Do not put the percent sign in your answer. Round your answer to 2 DECIMAL PLACES.\\n \\nE(rp)= \\n \\nClick…
Hors d'Age Cheeseworks has been paying a regular cash dividend of $5.04 per share each year for over a decade. The company is paying out all its earnings as dividends and is not expected to grow. There are 115,000 shares outstanding selling for $84 per share. The company has sufficient cash on hand to pay the next annual dividend. Suppose that, starting in year 1, Hors d'Age decides to cut its cash dividend to zero and announces that it will repurchase shares instead. a. What is the immediate stock price reaction? Ignore taxes, and assume that the repurchase program conveys no information about operating profitability or business risk. 8 Answer is complete but not entirely correct. Immediate stock price reaction decrease b. How many shares will Hors d'Age re-purchase? (Round your answer to the nearest whole number.) 8 Answer is complete but not entirely correct. Number of shares repurchased 6,900
The price-earnings per share of A, B, C, D and E is P6.00, P6.25, P6.80, P6.90 and P6.20. If A has earnings per share of P1,200.00, it would currently be ____ by ____ compared to the group average. a. Overvalued by P516 b. Undervalued by P540 c. Undervalued by P516 d. Overvalued by P550
Required: 5B. What is the number of PREFERENCE shares outstanding? * 6. How much is the EARNINGS PER SHARE, considering that the preference shares are cumulative and non-participating? (Present your answer with 2 decimal places, example: x.xx) * 7. How much is the Retained earnings, BEGINNING, unrestricted? *
9A. How much is the excess of par to be used for book value per share computation? 9B. How much is the BOOK VALUE PER SHARE for PREFERENCE shares considering that the preference shares are cumulative and participating? (Present answer in 2 decimal places, example: xx.xx)
What is the CAPM required return for Stock Z, in decimal form? Round your answer to 4 decimal places (example: if your answer is .13579, you should enter .1358). Margin of error for correct responses: +/- .0005. expected return (implied by market price) Beta Stock Z 9.3% 1.22 MRP 6% ? T-bonds 5% ?
6. How much is the EARNINGS PER SHARE, considering that the preference shares are cumulative and non-participating? (Present your answer with 2 decimal places, example: x.xx)
Firm A has EPS of $5. Using the following P/E ratios of competitors, calculate Firm A's stock price. B C D E 15.2 18.1 23.4 14.8 Do not round any intermediate work, but round your final answer to 2 decimal places (ex: $12.34567 should be entered as 12.35). Margin of error for correct responses: +/-.10.
On a particular date, FedEx has a stock price of $88.24 and an EPS of $7.36. Its competitor, UPS, had an EPS of $0.30. What would be the expected price of UPS stock on this date, if estimated using the method of comparables? Question content area bottom Part 1 A.$5.40 B. $7.19 C.$8.00 D.$3.60
What is the formula for Price to Book Value ( MV/BV) ratio ? If Current Price = 126, Total Equity = 20.000.000E , and number of shares =2.000.000 %3D compute the P/ BV and interpret it.
#2 The market price of a share of preferred stock is $22.26 and the dividend is $2.65. What discount rate did the market use to value the stock? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)) unanswered not_submitted Attempts Remaining: Infinity %23
what is the earnings per share? it says that 7.80 is incorrect

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