Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN: 9781337902571
Author: Eugene F. Brigham, Joel F. Houston
Publisher: Cengage Learning
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Question
Chapter 14, Problem 5TCL
Summary Introduction
To explain: Whether A Company is repurchasing stock or issuing new stock and its year end capitalization over the 5-year period.
Share Repurchase:
When a company issued its shares in the open market and finds that the share issued by the company are undervalued, the management decides to buy back its own shares to decrease the number of shares outstanding.
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Students have asked these similar questions
Using the data in the following table, E, calculate the return for investing in this stock from January 1 to December 31. Prices are after the dividend has been paid.
The return for investing in this stock from January 1 to December 31 is ☐ %. (Round to two decimal places.)
Data table
(Click on the following icon in order to copy its contents into a spreadsheet.)
Stock Price
Dividend
Jan 1
$49.96
Mar 31
$51.07
$0.59
Jun 30
$49.52
$0.58
Sep 30
$52.02
$0.77
Dec 31
$52.39
$0.77
Print
Done
- X
Select a publicly traded company that pays dividend. Go to www.yahoofinance.com and download the dividend data for the selected company and one of its competitors’ stock for the last 10 years (2012-2022). Use Excel to calculate annual dividends and the annual growth rate in dividends for the two companies.
Questions:
1. Based on historical growth rates in dividend, will the forecasted growth in dividend be constant or non-constant? Explain.
Question 1- Texas Instruments (TXN) (please include your Excel spreadsheet file!)
Actual data for Texas Instruments common stock! Suppose on December 31, 2011 you
purchased TXN stock at $29.11 per share. You hold TXN until December 31, 2021 when you sold
it at $188.47 per share. During this holding period, you received the following annual dividends
per share.
Year
Annual DPS
Year
Annual DPS
2012
$0.72
2017
$2.12
2013
$1.07
2018
$2.63
2014
$1.24
2019
$3.21
2015
$1.40
2020
$3.72
2016
$1.64
2021
$4.21
Using the above TXN stock data and using Excel spreadsheet, determine the average annual
return for your TXN investment.
Question 2
TXN stock price on December 31, 2020 was $162.70 per share. Calculate the 2021 annual
"holding period return" (HPR). Show all work.
Question 3
Using the table above, determine the average annual growth rate for TXN dividends per share
for the period 2012-2021. Show formula, input, & calculation. Excel is optional.
Chapter 14 Solutions
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
Ch. 14 - Prob. 1QCh. 14 - Prob. 2QCh. 14 - Would it ever be rational for a firm to borrow...Ch. 14 - Modigliani and Miller (MM), on the one hand, and...Ch. 14 - Prob. 5QCh. 14 - One position expressed in the financial literature...Ch. 14 - Prob. 7QCh. 14 - What is the difference between a stock dividend...Ch. 14 - Most firms like to have their stock selling at a...Ch. 14 - Prob. 10Q
Ch. 14 - Prob. 11QCh. 14 - RESIDUAL DIVIDEND MODEL Altamonte...Ch. 14 - Prob. 2PCh. 14 - STOCK REPURCHASES Gamma Industries has net income...Ch. 14 - Prob. 4PCh. 14 - EXTERNAL EQUITY FINANCING Coastal Carolina Heating...Ch. 14 - RESIDUAL DIVIDEND MODEL Walsh Company is...Ch. 14 - DIVIDENDS Brooks Sporting Inc. is prepared to...Ch. 14 - Prob. 8PCh. 14 - ALTERNATIVE DIVIDEND POLICIES In 2018, Keenan...Ch. 14 - Prob. 10SPCh. 14 - Prob. 11ICCh. 14 - Prob. 1TCLCh. 14 - Prob. 2TCLCh. 14 - Prob. 3TCLCh. 14 - Investors are more concerned with future dividends...Ch. 14 - Prob. 5TCL
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