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1, Whats the difference is between common and preferred stock. If you were an investor, which type of stock would
you prefer? why?
2. According to the information provided by S&P, share buybacks totaled $198.7 billion in Q1 2020, but then the process slowed down. Among the companies, there were Apple, T-Mobile, Alphabet, and Microsoft. In your opinion, what are
the reasons companies buy their shares back? Does the COVID-19 pandemic influence their decision?
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- 3. Below is a snapshot of some information about Microsoft Corporation from Yahoo! Finance on 10/16/2019. B) What is the Microsoft stock price and the market cap? C) Based on the information you collected in question (1), what is the total number of shares outstanding for Microsoft? (Hint: Market cap is the short name for “Market capitalization”. It represents the market value of a company’s total outstanding shares. It is equal to the stock price per share* total number of shares outstanding). D)What is Microsoft dividend payment and dividend yield?(Calculating rates of return) On December 17, 2007, the common stock of Google Inc. (GOOG) was trading for $ 669.23. One year later the shares sold for only $ 315.24. Google has never paid a common stock dividend. What rate of return would you have earned on your investment had you purchased the shares on December 17, 2007? Question content area bottom Part 1 The rate of return you would have earned is enter your response here %. (Round to two decimal places.)What about for these? (b) Suppose you have purchased some GameStop shares on margin at $5per share. You ask your broker to put in a limit sell order at $7, anda stop loss order at $4.50.i. What will happen if the stock price falls to $4.50?ii. What will happen if the stock price rises to $7?iii. Now suppose you had instead short-sold your GameStop shares(as in the first part of the question). What instructions mightyou give to your broker to minimise your losses and lock in yourgains?
- The Dunn Corporation is planning to pay dividends of $540000. There are 270000 shares outstanding, and earnings per share are $4. The stock should sell for $48 after the ex-dividend date. If, instead of paying a dividend, the firm decides to repurchase stock,a. What should be the repurchase price? b. How many shares should be repurchased? c. What if the repurchase price is set below or above your suggested price in part a? d. If you own 100 shares, would you prefer that the company pay the dividend or repurchase stock? a. 3/10, net 45 b. 3/15 net 30 c. 3/15 net 60 d.2/10 net 451. Discuss the implication of share Buybacks and Stock Options on the value of a company? 2. Discuss what recommendations you would have for a company like Bed, Bath, & Beyond, who spent 100's of millions of dollars on Share buybacks, which resulted them going bankrupt.I was able to insert the numbers. I am having a hard time of explaining whats going on. Please explain each section to me and what it representing. Please explain cash div/share and dividend yield to me for understanding. From what I see, since the stock price is lower in 2022, they have more shares outstanding and more assests available for the stockholders. In 2022, is the stock market undervauled and that is the reason they have so many shares?
- (Related to Checkpoint 7.1) (Calculating rates of return) On December 5, 2007, the common stock of Google Inc. (GOOG) was trading for $698.51. One year later the shares sold for only $283.99. Google has never paid a common stock dividend. What rate of return would you have earned on your investment had you purchased the shares on December 5, 2007? ... The rate of return you would have earned is %. (Round to two decimal places.)What is the Poitrowski score? What are the characteristics of shares that are suitable to be assessed with the Piotrowski framework? 2. Discuss the attractiveness of Treynor Black methodology to an investor in developed market large and medium cap equities. 3. The stock market falls by 33 percent in one day: is this necessarily inconsistent with the market hypothesis? Explain your reasoning 4. New information hits a company share such that the share price rises from 100 pence to 120 pence and then the share price rises gradually over the following 6 months to 150 pence despite any further news. Is this evidence of market efficiency? Explain your reasoning.An investor is considering purchasing one of the following three stocks. Stock X has a market capitalization of $77 billion, pays a relatively high dividend with little increase in earnings, and has a P/E ratio of 1212. Stock Y has a market capitalization of $6464 billion but does not currently pay a dividend. Stock Y has a P/E ratio of 3939. Stock Z, a housing industry company, has a market capitalization of $804804 million and a P/E of 1717. a. Classify these stocks according to their market capitalizations. b. Which of the three would you classify as a growth stock? Why? c. Which stock would be most appropriate for an aggressive investor? d. Which stock would be most appropriate for someone seeking a combination of safety and earnings? Question content area bottom Part 1 a. Stock X is classified as a (1) stock. (Select from the drop-down menu.) Part 2 Stock Y is classified as a (2) stock. (Select from the drop-down menu.) Part 3 Stock Z is…
- Your company is finally ready to sell its shares to the public. The manager of your company decided to sell 20% of total shares to an investment bank. In which market this transaction will take place? Select one: a.Secondary market b.Bonds market c.Primary market d.Stock exchange market e.None of the aboveSuppose a stock is not currently paying dividends, and its management has announced that it will not pay a dividend for several years, but that it does expect to start paying dividends sometime in the future. Under these conditions, which of the following statements is most correct? Since it is expected to someday pay dividends, the value of the stock today can be found with this equation: PO = D1/(r - g). Under these conditions, we can estimate a value for the stock, but we cannot use any form of the constant growth DCF model to do so. Such a stock should have a value of zero until it actually begins paying dividends. The value of the stock can be found using DCF procedures by finding the present value of expected future dividends accounting for their timing and amount.Simon and Simon, makers of cell phones, has a history of paying a dividend of $1 per share to their shareholders. Which of the following describes the likely response to the per share price of Simon and Simon with respect to the dividend? Select one: a. The stock price will fall by $1 on the ex-dividend date b. The stock price will fall by more than $1 on the record data c. The stock price will rise by $1 on the ex-dividend date d. The stock price will rise by more than $1 on the record date e. The stock price will not rise nor fall on any of these dates
