A company is retaining 40% of its net income of $19 million, and 10 million shares outstanding. What is the companies pay out policy? What is the dividend per share for this company?

In a three for two stock split for a company that previously had 1 million shares outstanding selling at $100 per share and a total market value of $100 million.

• How does the split affect the number of shares outstanding?
• How does the split affect the price per share?

Problem#2

A company is retaining 40% of its net income of $19 million, and 10 million shares outstanding.

• What is the companies pay out policy?
• What is the dividend per share for this company?

 
Problem#3

JK Corp paid a dividend of $1.20 per share. It forecasted a $2.20 per share in earnings and had a stock price of $40. The company later announced a 15% stock dividend.

What is the effect of the stock dividend on the share price?

Problem#4

New Rise has $200 million of assets that includes $50 million of cash and 8 million shares outstanding with no debt. If the firm uses $20 million of its cash to repurchase shares.

• What is the original price per share?
• What is new number of shares outstanding?
• What is the new price per share after the repurchase?