A firm has a market value equal to its book value. Currently, the firm has excess cash of $11,500 and other assets of $28,500. Equity is worth $40,000. The firm has 950 shares of stock outstanding and net income of $3,800. What will the stock price per share be if the firm pays out its excess cash as a cash dividend?
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A firm has a market value equal to its book value. Currently, the firm has excess cash of $11,500 and other assets of $28,500. Equity is worth $40,000. The firm has 950 shares of stock outstanding and net income of $3,800. What will the stock price per share be if the firm pays out its excess cash as a cash dividend?
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- A firm has a market value equal to its book value. Currently, the firm has excess cash of $500 and other assets of $8,000. Equity is worth $8,500. The firm has 850 shares of stock outstanding and net income of $1,200. What will the new earnings per share be if the firm uses its excess cash to complete a stock repurchase?A firm has a market value equal to its book value. Currently, the firm has excess cash of $7,000 and other assets of $21,000. Equity is worth $28,000. The firm has 600 shares of stock outstanding and net income of $2,400. What will the stock price per share be if the fim pays out Its excess cash as a cash dividend?A firm has a market value equal to its book value. Currently, the firm has excess cash of $7,000 and other assets of $21,000 Equity is worth $28,000. The firm has 600 shares of stock outstanding and net income of $2,400. What will the stock price per share be if the firm pays out its excess cash as a cash dividend? Multiple Choicea). $64b). $43c). $35d). $39e). $60
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- Tucker’s National Distributing has a current market value of equity of $10,665. Currently, the firm has excess cash of $640, total assets of $22,400, net income of $3,210, and 500 shares of stock outstanding. Tucker’s is going to use all of its excess cash to repurchase sharesof stock. What will the stock price per share be after the stockrepurchase is completed?Big Industries has the following market-value balance sheet. The stock currently sells for $20 a share, and there are 1,260 shares outstanding. The firm will either pay a $1 per share dividend or repurchase $1,260 worth of stock. Ignore taxes. Liabilities and Assets Equity $ 7,200 Fixed assets 29,300 Debt $11,300 25,200 Cash Equity a. What will be the subsequent price per share if the firm pays a dividend? b. What will be the subsequent price per share if the firm repurchases stock? (Round your answer to the nearest dollar.) c. If total earnings of the firm are $25,500 a year, find earnings per share if the firm pays a dividend. (Do not round intermediate calculations. Round your answer to 3 decimal places.) d. If total earnings of the firm are $25,500 a year, now find earnings per share if the firm repurchases stock. (Do not round intermediate calculations. Round your answer to 3 decimal places.) e. If total earnings of the firm are $25,500 a year, find the price-earnings ratio if the…You are given the following information: Stockholders' equity as reported on the firm’s balance sheet = $5.75 billion, price/earnings ratio = 9.5, common shares outstanding = 20 million, and market/book ratio = 2.3. The firm's market value of total debt is $5 billion; the firm has cash and equivalents totaling $300 million; and the firm's EBITDA equals $3 billion. What is the price of a share of the company's common stock? Do not round intermediate calculations. Round your answer to the nearest cent. $ What is the firm's EV/EBITDA? Do not round intermediate calculations. Round your answer to two decimal places.
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