3. A firm announced that it will pay a $0.10 dividend per share to holders of...

3. A firm announced that it will pay a $0.10 dividend per share to holders of record as of Wednesday, July 29, 2020. Holding all else constant, the stock price will be lower by $0.10 per share at the opening of trading on

A) Monday, July 27, 2020
B) Tuesday, July 28, 2020.
C) Wednesday, July 29, 2020.
D) Thursday, July 20, 2020
E) The stock price will not be lower on any of the above days.

.

Page 3

4. XYZ Inc. plans to sell an asset for $21,000. The asset was acquired 5 years ago for $50,000 and was depreciated using the straight-line method with an expected life of 5 years. If XYZ’s tax rate is 21%, then the taxes owed on the sale will be:
:

A B C D E

5.

A B C D E

$2,000
$3,00
$4,100
$4,410
None of the above

Expert Solution

Note

If you have any queries kindly post a comment, i will solve it earliest.

If you satisfied with my answer, kindly give a thumbs up, it will help to encourage me.

ekkarill92 answered 2 years ago

A firm announced that it will pay a $0.10 dividend per share to holders of record...

A firm announced that it will pay a $0.10 dividend per share to holders of record as of Wednesday, July 29, 2020. Holding all else constant, the stock price will be lower by $0.10 per share at the opening of trading on A) Monday, July 27, 2020 B) Tuesday, July 28, 2020. C) Wednesday, July 29, 2020. D) Thursday, July 20, 2020 E) The stock price will not be lower on any of the above days.

A Corporation announced of its plans to pay: $3 dividend per share in 1 year, $6...

A Corporation announced of its plans to pay: $3 dividend per share in 1 year, $6 dividend per share in 2 years, $9 dividend per share in 3 years, after which the dividend will be increasing at a constant annual growth rate of 5 percent. The rate of return for this company is 12%. Calculate the value of one share of its stock. Part of the calculation will be finding the Present Value of a ordinary annuity annuity due regular...

Tesla is expected to pay a dividend of $3 per share at the end of this...

Tesla is expected to pay a dividend of $3 per share at the end of this year; its beta is 0.9; the risk-free rate is 5.2%, and the market risk premium is 6%. The dividend is expected to grow at some constant rate g, and the stock currently sells for $40 per share. What does the market believe will be the stock's price three years from now?

Your company expects to pay a dividend of $1 per share, $2.4 per share and $3...

Your company expects to pay a dividend of $1 per share, $2.4 per share and $3 per share over the next 3years. Thereafter, dividends are expected to grow at 15 % per annum from 2 years, then 10% definitely. If your cost of capital is 24%, what price will investors be willing to pay for a share of the stock today The company has paid a dividend of $300 per share, which is expected to grow at 15% per annum....

Company just announced it will cut its dividend from $3 to $1.50 per share and use...

Company just announced it will cut its dividend from $3 to $1.50 per share and use the extra funds to expand. Prior to the announcement, Bill’s Bootstrap dividends were expected to grow at a 3% rate, and its share price was $20. With the new expansion, the dividend payout rate will be 40% and the return on the expansion will be 20%. What share price would you expect after the announcement and would you recommend the expansion go ahead?

Last year, Wilderness Adventures paid an annual dividend of $3.70 per share. The firm recently announced...

Last year, Wilderness Adventures paid an annual dividend of $3.70 per share. The firm recently announced that it will increase its dividend by a constant 12.5 percent annually. What is one share of this stock worth today at a required rate of 17.8 percent? $78.05 $79.63 $78.54 $79.75 Excelor stock is expected to pay $2.80 per share as its next annual dividend. The firm has a policy of increasing the dividend by 10.0 percent annually. The stock has a market...

2A. Firm ABC paid an annual dividend of $2.00 per share last year. Management just announced...

2A. Firm ABC paid an annual dividend of $2.00 per share last year. Management just announced that future dividends will increase by 2 percent annually. What is the amount of the expected dividend in year 5? 2B. Firm ABC is going to pay an annual dividend of $2.00 per share next year. Management just announced that future dividends will increase by 2 percent annually. What is the amount of the expected dividend in year 5? 2C. Firm ABC is going to pay...

Capri Inc. is expected to pay $1.98 dividend per share for each of the next 3...

Capri Inc. is expected to pay $1.98 dividend per share for each of the next 3 years, after which there are no additional dividend payments. Estimate its intrinsic value per common share using the dividend discount model assuming a cost of equity of 7%. $26.32 $28.29 $5.20 $5.94

A stock is expected to pay a dividend of$1 per share in 3-month and in 9-month....

A stock is expected to pay a dividend of$1 per share in 3-month and in 9-month. The stock price is$80. An investor has just taken a long position in a 12-month futures contract on the stock. The zero ratesfor 3-, 6-, 9-, 12-month are 5%, 5.5%, 6% and 6.5% per annum with continuous compounding, respectively.6-month later, the stock price is$82. The zero rates happen to be the implied forward rates 6-month ago.What is the value of the long position in...

Company A announced that its current dividend is $10 per share (D0=$10). The dividend is expected...

Company A announced that its current dividend is $10 per share (D0=$10). The dividend is expected to grow at a constant rate of 5 percent a year for the first 2 years and it will be 4 percent thereafter. The risk-free rate is 4 percent, the required rate of return on the market portfolio is 7 percent and the company's beta equals to 2. What is the expected price of the stock today (t=0)?

Question