How much will the EPS be after the proposed repurchase? Why?
The Off-Shore Steel Company has earnings available for common stockholders of $2 million and has 500,000 shares of common stock outstanding at $60 per share. The firm is currently contemplating the payment of $2 per share in cash dividends. a. Calculate the firm’s current earnings per share (EPS) and price/earnings (P/E) ratio. b. If the firm can […]
how much of a per-share dividend can Ashkenazi pay?
1.Ashkenazi Companies has the following stockholders’ equity account: Assuming that state laws define legal capital solely as the par value of common stock, how much of a per-share dividend can Ashkenazi pay? If legal capital were more broadly defined to include all paid-in capital, how much of a per-share dividend could Ashkenazi pay? 2. The board of Kopi […]
What effect, if any, will the dividend have on the firm’s total assets?
At the quarterly dividend meeting, Wood Shoes declared a cash dividend of $1.10 per share for holders of record on Monday, July 10. The firm has 300,000 shares of common stock outstanding and has set a payment date of July 31. Prior to the dividend declaration, the firm’s key accounts were as follows: a. […]
What change, if any, would you expect in the price per share when the stock begins trading on the ex dividend day?
Kathy Snow wishes to purchase shares of Countdown Computing, Inc. The company’s board of directors has declared a cash dividend of $0.80 to be paid to holders of record on Wednesday, May 12. a. What is the last day that Kathy can purchase the stock (trade date) and still receive the dividend? b. What […]
What is the maximum dividend per share that the firm can pay?
The Howe Company’s stockholders’ equity account follows: The earnings available for common stockholders from this period’s operations are $100,000, which have been included as part of the $1.9 million retained earnings. a. What is the maximum dividend per share that the firm can pay? (Assume that legal capital includes all paid-in capital.) b. If the firm has $160,000 […]