AFM131 Lecture 22: AFM131 Module11-1
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** PLEASE ANSWER Q29-Q31 BASED ON THE FOLLOWING TABLE.
DIVIDEND | PRICE1 | |
T0 | 13.8 | |
T1 | 0.25 | 14.5 |
T2 | 0.24 | 13.2 |
T3 | 0.23 | 16.6 |
29) Compute the rate of returns from t1 to t3.
30) Compute the arithmetic average from t1 to t3.
31) Compute the geometric average from t1 to t3.
32) Suppose the average rate of return on Banana Co.'s bonds is 9%. If the 3-month T-bill yield is currently 0.27%, what is the risk premium on Banana's bonds?
Dividend policy please help
se common stock currently sells for $20 per share
Preferred stock | $500,000 |
Common stock(2,000,000 shares@$1 | 2,000,000 |
paid in capital in excess of par | 10,000,000 |
retained earnings | 11,600,000 |
total stockholders equity | $24,100,000 |
a) what is the maximum dividend per-share se can pay? ( assume capital includes all paid in capital)
b) recast the partial balance sheet(to Stockholders equity accounts) to show independently
1-a 2-for-1 stock split of the common stock
2-a cash dividend of $1.50 per share
3-a stock dividend of 5% on the common stock
c) at what price what you expect se stock to sell after
1-the stock split
2- the stock dividend?