You are employed in the Finance Division of a firm that has 567,562,000 shares outstanding....
50.1K
Verified Solution
Link Copied!
Question
Finance
You are employed in the Finance Division of a firm that has 567,562,000 shares outstanding. The current share price is $27.86. The forecast earnings are $1,788,570,000.
Calculate the current market value of firm equity and the earnings per Share (EPS).
The firm has accumulated a stockpile of $2,500,000,000 in excess cash, and the directors want to pay-out these funds to the shareholders. You have been asked to compare the effects of a special one-time dividend and a share repurchase.
If the funds are paid out as a one-time special dividend, what will be the dividend per share (DPS)? What is the firm value after the dividend? What is the share price after the dividend? What is the EPS after the dividend?
If the firm executes a share repurchase, how many shares can it purchase at what price? How many shares will remain? What is the firm value after the repurchase? What is the share price after the repurchase? What is the EPS after the repurchase?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
