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Suppose that you own 1,900 shares of Nocash Corp. and the company is about to pay a 25% stock dividend. The stock

currently sells at $100 per share.

a.What will be the number of shares that you hold after the stock dividend is paid? (Do not round intermediate calculations.)
 
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A stock is selling today for $60 per share

Question

A stock is selling today for $60 per share. At the end of the year, it pays a dividend of $3 per share and sells

for $75.

a.What is the total rate of return on the stock? (Enter your answer as a whole percent.)
  Rate of return %  
b.What are the dividend yield and percentage capital gain? (Enter your answers as a whole percent.)
  
  Dividend yield %  
  Capital gains yield %  
c.Now suppose the year-end stock price after the dividend is paid is $51. What are the dividend yield and percentage capital gain in this case? (Negative amounts should be indicated by a minus sign. Enter your answers as a whole percent.)
  
  Dividend yield %  
  Capital gains yield
 
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What is the price of Consolidated stock

Question

  a.What is the price of Consolidated stock?   Stock price$    b.What is the total market value of its equity? (Enter your answer in millions.)   Market value of equity$  million   Consolidated now decides to increase next year’s dividend to $20 a share, without changing its investment or borrowing plans. Thereafter the company will revert to its policy of distributing $10 million a year. c.How much new equity capital will the company need to raise to finance the extra dividend payment? (Enter your answer in millions.)   New equity$  million   d.What will be the total present value of dividends paid each year on the new shares that the company will need to issue? (Enter your answer in millions.)   Present value$  million   e.What will be the transfer of value from the old shareholders to the new shareholders? (Enter your answer in millions.)   Transfer of value$  million   f.Is this figure more than, less than, or the same as the extra dividend that the old shareholders will receive?   More thanLess thanThe same

 
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Suppose that you own 1,700 shares of Nocash Corp

Question

Suppose that you own 1,700 shares of Nocash Corp. and the company is about to pay a 25% stock dividend. The stock

currently sells at $120 per share.

a.What will be the number of shares that you hold after the stock dividend is paid? (Do not round intermediate calculations.)
  Number of shares  
b.What will be the total value of your equity position after the stock dividend is paid? (Do not round intermediate calculations.)
  Total value$   
c.What will be the number of shares that you hold if the firm splits five for four instead of paying the stock dividend?
  Number of shares hold  
 
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