If Chester Corp. were to buy all of it's shares outstanding at its current price, how much would it cost Chester Corp, excluding brokerage fees? Select 1 $90 million $86 million $2 million $176 million Save Answer
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- QP15 15. Caleulating NPV Plant, Inc., is considering making an offer to purchase Palmer Corp. Plant's vice president of finance has collected the following information: Plant Palmer Price earnings ratio 14.5 10 Shares outstanding 1,500,000 750,000 Earnings $4.200,000 $960,000 Dividends 1,050,000 470,000 Plant also knows that securities analysts expect the earnings and dividends of Palmer to grow at a constant rate of 4 percent each year. Plant management believes that the acquisition of Palmer will provide the firm with some economies of scale that will increase this growth rate to 6 percent per year. a. What is the value of Palmer to Plant? b. What would Plant's gain be from this acquisition? c. If Plant were to offer $20 in cash for each share of Palmer, what would the NPV of the acquisition be? d. What is the most Plant should be willing to pay in cash per share for the stock of Palmer? e. Ir Plant were to offer 225.000 of its shares in exchange for the outstanding stock of Palmer,…Please do not give solution in image formate thanku Find the Cost of Equity: The company has issued equity stock priced at $100 each for its 15,000 shares. the company is expected to give $8 as dividend for each share next year and thereafter the company is expected to grow at the rate of 5% in the foreseeable future. What is its equity cost of capital Question 2 options: 13% 17% 11% 15%Suppose we purchase a share of IBM for $120 and hold for 1 year. We receive a dividend of $4 and then sell the share for $130. What is the holding period return? 15.00% 9.50% 11.67% 6.95%
- Calculate the total cost, proceeds, and gain (or loss) (in $) for the stock market transaction. Company Number ofShares PurchasePrice SellingPrice Commissions TotalCost Proceeds Gain(or Loss) Buy Sell Odd Lot an oil company 100 $48.20 $57.06 3% 3% ? ? ?If you bought 200 shares of Amazon when they issued their IPO in May 1997 for $18/share and then sold all 200 shares today for $3,284/share. What is the Cost Basis for calculating your Capital Gain and Return On Investment (ROI) O $3,600 O $3,266 O $653,200 O $656,800Share Price $ 20.00 EPS $ 3.00 Shares outstanding (million) 10 Book Value $ 25.00 If the company above purchases 1 million shares at $24 what will the book value of the company change to?
- QUESTION 17 If a company has 2240 million shares outstanding and each share is worth AUD 3.60 the market capitalization (value of the company) is million AUD. The company seeks to raise AUD 728 million by selling new shares with a subscription price of AUD 2.60, therefore it has to issue million new shares. After issuing these new shares successfully its new market capitalization will be million AUD and the total amount of shares will grow to million. As a result the value of each share after the issue will be AUD. The difference between the subscription price and the share price after the issue is AUD. Therefore, it is worth to pay up to AUD for the RIGHT to buy shares at AUD 2.60. Compare the old share price with the share price after the issue. It dropped by AUD. The ratio of the number of old shares to newly issued shares is exactly . This is also the number of old shares you need to get ONE RIGHT for a new share. HINT: Check if old shareholders' losses can be recovered by selling…Suppose that investors cumulatively short-sell 6 million shares of a stock and the share price appreciates from $200 to $1100. In the meantime, the stock pays a dividend of $20 per share. What is the total amount of loss that the short sellers suffer from their position? You can ignore shorting fees and assume all interest rates are zero). A. $5.5 billion B. $7.3 billion C. $6.1 billion O D. $4.3 billion51. What is the amount of dividend per share that MOONSTONE paid on March 31, 2021? 1.50 0.85 1.59 1.70 No answer from the given choices. 52. How much is the ordinary share capital, December 31, 2021? 24,531,000 24,498,800 18,870,000 17,000,000 No answer from the given choices. 53. How much will is the total cash dividends paid during the year 2021? 9,000,000 6,750,000 12,399,900 12,439,800 No answer from the given choices. 54. Number of fractional warrants outstanding as of December 31, 2021 66,100 13,220 52,880 0 No answer from the given choices. 55. How much is the retained earnings appropriated for contingency loss? 300,000 200,000 250,000
- 23 O 1 You short-sell 200 shares of Tuckerton Trading Company, now selling for $56 per share. What is your maximum possible gain, ignoring transactions cost? O $56 $11,200 Multiple Cholce unlimitedAssume you are given the following information for firms A and B: A В $1,563,400.00 $2,357,316.00 $2,051,347.00 $1,257,431.00 Price $31.25 $31.25 i 13.52% 13.52% EBIT $97,347.00 $97,347.00 No taxes How do you replicate an investment in 79% of stock B by using stock A? What is the return of the replicating strategy?Saved ped Suppose you own 60,000 shares of common stock in a firm with 3 million total shares outstanding. The firm announces a plan to sell an additional 1.2 million shares through a rights offering. The market value of the stock is $35 before the rights offering and the new shares are being offered to existing shareholders at a $5 discount. a. If you exercise your preemptive rights, how many of the new shares can you purchase? b. What is the market value of the stock after the rights offering? (Enter your answer in millions rounded to 1 decimal place. (e.g., 32.1)) c-1. What is your total investment in the firm after the rights offering? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places. (e.g., 32.16)) c-2. If you exercise your preemptive right how many original shares and how many new shares do you have? d-1. If you decide not to exercise your preemptive rights, what is your investment in the firm after the rights offering? (Do not…