A company with four equal share co-founders creates an Employee Stock Option Pool including up to 10% of the company's stocks. How much will the co-founders own on a fully diluted basis (meaning if the entire pool is issued and no options are issued to the co-founders themselves)? 12.5% 22.5% 27.5% 32.5%

A company with four equal share co-founders creates an Employee Stock Option Pool including up to 10% of the company's stocks. How much will the co-founders own on a fully diluted basis (meaning if the entire pool is issued and no options are issued to the co-founders themselves)? 12.5% 22.5% 27.5% 32.5%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Exam What is the rate of return when 20 shares of Stock A, purchased for $15/share, are sold for $340? The commission on the sale is $6. Rate of Return [?] % Give your answer as a percent rounded to the nearest tenth. Enter s Corporation. All Rights Reserved.
MINIMUM AMOUNT/NUMBER OF SHARES YOU CAN INVEST IN THE STOCK MARKET. -For each stock, the minimum amount of shares to be traded is fixed and depends on the price range of the stock. THE BOARD LOT TABLE PRICE TICK SIZE LOT SIZE Board Lot Table determines the minimum number of shares From То one can purchase or sell at a specific price range. Therefore, 1,000,000 100,000 10,000 10,000 1,000 0.0001 0.0099 0.0001 the minimum amount needed to invest in stocks varies and 0.01 0.049 0.001 will depend on the market price of the security as well as its corresponding board lot. 0.05 0.249 0.001 0.25 0.495 0.005 0.5 4.99 0.01 5 9.99 0.01 100 TICK SIZE-A minimum change in price, up or down. 10 19.98 0.02 100 20 49.95 0.05 100 ΕΧΑMPLE: 50 99.95 0.05 10 An investor wishes to buy a stock whose market price is PHP 100.00 per share. 100 199.9 О.1 10 200 499.8 0.2 10 500 999.5 0.5 10 What is the minimum number of shares that the investor can 1000 1999 1 5 buy? 2000 4998 2 5000 UP BOARD LOT TABLE = 10…
11. On January 1, a shareholder purchased 81 shares of stock in Beta company for $115 per share. On August 20, the company paid an $8 dividend per share. On December 31, the shareholder sold all the shares for $113 per share. What is the overall Economic Rate of Return for this investment? a. 8.70% b. 6.96% c. 5.22% d. 5.31%
a corporation purchases 17000 shares of its own $20 par common stock for $25 per share, recording it at cost. What will be the effect on total stockholders' equity? A.) Increase by $425000 B.) Decrease by $425000 C.) Decrease by $85000 D.) Decrease by $340000 Please explain other options why these are incorrect dont use ai boats thank you
A company has just paid an ordinary share dividend of 32 cents and expected to pay a dividend of 33.6 cents in one year’s time. The company has a cost of equity of 13%. What is the market price of the company’s shares to the nearest cent on an ex dividend basis? $3.20 $4.41 $2.59 $4.20 Use the following information to answer questions 18 and 19 Bill plans to open a service centre. The equipment will cost $50,000. Bill expects the after-tax cash inflows to be $15,000 annually for 8 years, after which he plans to scrap the equipment and retire. What is the project’s regular payback period? 2.67 years 3.33 years 3.67 years 4.33 years Assume the required return is 10%. What is the project’s discounted payback period? 4.25 years 5.25 years 6 years the project does not payback on discounted basis.
Smith Enterprises Smith Enterprises recently conducted an IPO. In this, Smith received $14 per share from the underwriter, the offering price per share was $16 and the stock price rose to $19 on the first day of trading. Refer to Smith Enterprises. What is the first day return on an investment in the IPO? O 21.42% 15.79% 18.75% 12.56%
An IPO is offered at $9.50 per share for 7 million shares. The IPO underwriters had a spread of 7.25%. What price did the underwriters pay per share of the IPO firm? A. $8.81 B. $9.50 C. $8.86 D. $9.17 E. $10.19
Treasury Stock A company purchases 1,980 shares of treasury stock for $5 per share. Enter your answers as positive numbers. Required: 1. How will this transaction affect stockholders' equity? If there is no effect, choose "No effect" and enter zero ("0"). 2. How will this transaction affect net income? If there is no effect, choose "No effect" and enter zero ("0").
(b) The owners' equity account for Rantuil Utilities Berhad are shown below: Common Share (RM2 par) Capital Surplus Retained earnings Total shareholder's equity RM30,000 RM285,000 RM648,100 RM963,100 If Rantuil Utilities Berhad currently sells for RM30 per share and a 10 percent share dividend is declared, i. Determine the number of new shares that will be distributed. ii. Reconstruct new owners' equity account for Rantuil Utilities Berhad.
Suppose that the market price of Company A is $50 per share and that of Company B is $20. If A offers half a share of common stock for each share of B, what is the percentage increase in wealth for B's shareholders? (Assume that the offer has no effect on the value of A's shares.) +25 percent −20 percent +20 percent −25 percent
ed A company has the following balance sheet (market values): Liabilities + Equity Debt Equity Assets Cash Operating Assets 600 1000 400 1200 If the firm has 300, find its fair share price after it repurchases 100 worth of shares: (round your answer to the nearest 0.01)
If a company declares a $0.30 dividend and you own 100 shares, how much dividends will you receive?

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