Company W is a quoted company. Company W 's Board has offered shareholders a scrip dividend as an alternative to a cash dividend. Explain how Company W 's shareholders should decide whether to accept the scrip as an alternative to cash.
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Question a
Company W is a quoted company. Company W 's Board has offered shareholders a scrip dividend as an alternative to a cash dividend.
Explain how Company W 's shareholders should decide whether to accept the scrip as an alternative to cash.
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- Question a .A company has a revenue of 500m, EBITDA margin of 20%, no cash and an interest coverage ratio of 2x. Can you find the net leverage ratio (net debt / EBITDA)? Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this lineClear selection Good news and bad news affect a company's stock price. If you own stock 1 point in Delta Airlines, which of the following could affect the price of Delta stock? A large increase in the price of fuel A competing airline goes out of business Delta airline workers go on strike All of the above DELL 2$ 4 % & 6 7 8. 6.Finance what is cost of equity as an effective annual rate given that they pay semi annually, current dividend is $1.05 and expected to grow at 1.8% forever and the current share price is 28.70 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Do not provide Excel Screet shot rather use tool table Answer completely.
- Stempsnsm Xan Isnoitibst mont 19tti tempat b woH Task 2: A financial market participant is woried about how short-term market fluctuations over the next 3 months might impact his equity position in ABC Corporation. The individual is concerned about short-term downside price movements, he wants to remain invested in ABC shares (i.e., maintain the upside potential) because he remains positive about the company's long-term performance. Recommend and describe the appropriate derivatives strategy that will keep the market participant invested in ABC shares while protecting against a short-term price decline. ton bluorie meve ne mont eniens ceol and sqmos constant is to inlogwaiverit mort eldiveni ed of 1910 nl notatia pe tot elqmsxe ns ritiw evods srit nislqx3 insoitinpieni oot on pirotesto ed S noitesuo A. Protective Put B. Collar C. Zero-Cost Collar D. Covered Call E. Forward Rate Agreement Based on your choice, give a short description of the appropriate strategy: (hightlight the correct…b Preview File Edit View Go Tools Window Help mgt120h-a17.pdf Page 4 of 10 a. Leveraging with debt is always a better idea. b. Their earnings per share may decrease. c. The price of the shares will automatically decrease. Dividends must be paid on a periodic basis. d. 11. Corporations generally issue stock dividends in order to a. Increase the market price per share. b. Exceed shareholders' dividend expectations. c. Increase the marketability of the shares. d. Decrease the amount of capital in the corporation. Debenture Valuation Cost-Volume-Profit Analysis 90 The Effect Of Prepaid Taxes On Assets And Liabili... 10. Shareholders of a company may be reluctant to finance expansion through issuing more equity because O D CC 7 V Search (Cª Ơ Sat Apr 15 3:05 PM 9. Two sisters operate a bed and breakfast on the coast of BC reservations they are required to pay cash in advance equal to one-half of the te stay. How should the sisters account for the cash received as reservations are made? of…CALCULATING 3MS COST OF CAPITAL Use online resources to work on this chapters questions. Please note that website information changes over time, and these changes may limit your ability to answer some of these questions. In this chapter, we described how to estimate a companys WACC, which is the weighted average of its costs of debt, preferred stock/ and common equity. Most of the data we need to do this can be found from various data sources on the Internet. Here we walk through the steps used to calculate Minnesota Mining Manufacturings () WACC DISCUSSION QUESTIONS 1. As a first step, we need to estimate what percentage of MMMs capital comes from debt, preferred stock, and common equity This information can be found on the firms latest annual balance sheet. (As of year end 2017, had no preferred stock.) Total debt includes all interest-bearing debt and is the sum of short-term debt and long-term debt. a. Recall that the weights used in the WACC are based on the companys target capital structure. If we assume that the company wants to maintain the same mix of capital that it currently has on its balance sheet, what weights should you use to estimate the WACC for ? b. Find MMMs market capitalization, which is the market value of its common equity. Using the sum of its short-term debt and long-term debt from the balance sheet (we assume that the market value of its debt equals its book value) and its market capitalization, recalculate the firms debt and common equity weights to be used in the WACC equation. These weights are approximations of market-value weights. Be sure not to include accruals in the debt calculation.
- If a management team wishes to boost the company's stock price, then it should consider Copyright by Glo-Bus Software, Inc. Copying, distributing, or 3rd party website posting isexpressly prohibited and constitutes copyright violation O boosting the company's dividend by $0.50 or more every year, increasing the company's retained earnings, and paying off all long-term debt as rapidly as possible in order to achieve an A+ credit rating. O paying off all long-term debt as rapidly as possible, keeping the company's dividend payout ratio between 25% and 50%, spending additional money on corporate citizenship and social responsibility, and maintaining a credit rating that is no less than B+. O increasing the company's retained earnings each year, keeping the company's credit rating at A (or above), spending amounts on corporate citizenship and social responsibility that are below the industry average, and issuing sufficient shares of common stock to raise the funds to pay off all long-term…tol Processing ng Help Save & Exit Submit Saved Practice Problems i Check my work Eaton Electronic Company's treasurer uses both the capital asset pricing model and the dividend valuation model to compute the cost of common equity (also referred to as the required rate of return for common equity). Assume: Rf = 7% Km 10% = 1.6 D1 = $ 0.70 $ 19 8% %3D PO = nt a. Compute Ki (required rate of return on common equity based on the capital asset pricing model). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) ences Ki b. Compute Ke (required rate of return on common equity based on the dividend valuation model). (Do not round intermediate calculations, Input vour answer as a percent rounded to 2 decimal places.) < Prev 10 of 10 Next Mc Graw Hill 149 MacBook AirIf a management team wishes to boost the company's stock price, then it should consider Copyright by Gio-lus Software, Inc. Copying, distributing or Drd party website posting impressly prohibited and constitutes copyright violation boosting the company's dividend by $0.50 or more every year, increasing the company's retained earnings, and paying off all long-term debt as rapidly as possible in order to achieve an A+ credit rating. O increasing its effort to boost its market share of branded footwear in all geographic regions, spending additional money on corporate citizenship and social responsibility, and keeping the company's image rating above 75. O paying off all long-term debt as rapidly as possible, keeping the company's dividend payout ratio between 25% and 50%, spending additional money on corporate citizenship and social responsibility, and maintaining a credit rating that is no less than B+. O increasing the company's retained earnings each year, keeping the company's credit…
- No Excel You open a new margin account with an initial margin requirement of 65% and a maintenance margin requirement of 45%. You purchase stock for $24,512, borrowing to the full extent allowable. Assuming there are no dividends or interest paid to or from the margin account, at what price could you first receive a margin call?Frozen Food Products Cost of Capital Case Assignment This case is due at the beginning of the next class period Please create 2 copies of your answers, one copy to turn in, and one copy to keep for yourself 1 Calculate the unlevered beta (bU) for each of the comparable firms that are in the same industry as Frozen Foods Products 2 Calculate the industry median unlevered beta 3 Estimate the industry discount rate (rU) using the unlevered beta 4 Calculate the operating cash flows, incQuestion A According to an international survey of CFOs of publicly traded firms, which of the following was NOT considered to be an important factor in determining the optimal amounts of debt in a firm's capital structure? A) Credit ratings B) Corporate tax shield C) Financial distress cost D) All of the above were considered to be important. Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line