Underneath the situation described partly e is the investor higher off?

Well being Techniques Inc. is contemplating a 15 % inventory dividend. The capital accounts are as follows: Present extra Well being Techniques Inc. is contemplating a 15 % inventory dividend. The capital accounts are as follows: Frequent inventory (4000000 shares at $10 par) $ 40000000 Capital in extra of par* 15000000 Retained earnings 45000000 Web price $100000000 *The rise in capital in extra of par on account of a inventory dividend is the same as the shares created occasions (Market value Par worth). The companys inventory is promoting for $24 per share. The corporate had complete earnings of $6000000 with 4000000 shares excellent and earnings per share had been $1.50. The agency has a P/E ratio of 16. a. What changes must be made to the capital accounts for a 15 % inventory dividend? Present the brand new capital accounts. (Don’t spherical intermediate calculations. Enter your solutions in {dollars} not tens of millions (e.g. $1230000).) Frequent inventory $ Capital in extra of par Retained earnings Web price $ b. What changes can be made to EPS and the inventory value? (Assume the P/E ratio stays fixed.) (Don’t spherical intermediate calculations and spherical your solutions to 2 decimal locations.) EPS $ Inventory value $ c. What number of shares would an investor have if she or he initially had 100? (Don’t spherical intermediate calculations and spherical your reply to the closest complete share.) Variety of shares d. What’s the buyers complete funding price earlier than and after the inventory dividend if the P/E ratio stays fixed? (Don’t spherical intermediate calculations and spherical your solutions to the closest complete greenback.) Complete Funding Earlier than inventory dividend $ After inventory dividend $ e. Assume Mr. Coronary heart the president of Well being Techniques needs to learn stockholders by protecting the money dividend at a earlier stage of $1.10 despite the truth that the stockholders how have 15 % extra shares. As a result of the money dividend isn’t decreased the inventory value is assumed to stay at $24. What’s an buyers complete funding price after the inventory dividend if he/she had 100 shares earlier than the inventory dividend? Complete funding $ f. Underneath the situation described partly e is the investor higher off? Sure No g. As a closing query what’s the dividend yield on this inventory below the situation described partly e? (Enter your reply as a % rounded to 2 decimal locations.) Dividend yield % Present much less

find the cost of your paper

What’s the price of debt for Kenny Enterprises if the bond sells on the following costs?

There are different questions like this on the market and I’ve been attempting to make use of them to determine my pr Present extra There are different questions like this….

What’s the present yield on a ten yr United States Treasury Bond?

Utilizing the website online thatswacc.com find the present Present extra find the next info for Wal-Mart. Utilizing the website online thatswacc.com find the present WACC Value of Debt and Value….

What’s the initiatives internet current worth?

Garner-Wagner is contemplating investing in a venture that requires an funding o Present extra a. Garner-Wagner is contemplating investing in a venture that requires an funding of $3000000. The venture….