Dunn Corporation - Repurchase of stock
The Dunn Corporation is planning to pay dividends of $500,000. There are 250,000 shares outstanding, and earnings per share are $5. The stock should sell for $50 after the ex-dividend date. If, instead of paying a dividend, the firm decides to repurchase stock,
a. What should be the repurchase price?
b. How many shares should be repurchased?
c. What if the repurchase price is set below or above your suggested price in part a?
d. If you own 100 shares, would you prefer that the company pay the dividend or repurchase stock?
https://brainmass.com/business/dividends-stock-repurchase-and-policy/dunn-corporation-repurchase-of-stock-177755
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The Dunn Corporation is planning to pay dividends of $500, 000. There are 250,000 shares outstanding, and earnings per share are $5. The stock should sell for $50 after the ex-dividend date. If, instead of paying a dividend, the firm decides to repurchase stock,
a. What should be the repurchase price?
Number of shares outstanding= 250,000
Ex dividend price= $50.00
Therefore ex dividend value of shares= $12,500,000 =$50. x 250,000.
Amount of ...
Solution Summary
The repurchase price and the number of shares to be repurchased are calculated.
Evaluating a Financial report - Kroger
I am looking for some help with putting together information on The Kroger Co.'s last two annual reports. I need to compute the eight ratios listed below for two consecutive years, discuss their
significance for management and compare them to industry averages.
Current Ratio
Quick Ratio
Inventory Turnover Ratio
Debt Ratio
Net Profit Margin Ratio
ROI
ROE
Price-to-Earnings Ratio (P/E) Ratio
I need help trying to analyze Kroger's working capital management. Explaining why the companyÂ's operating and cash cycles are currently optimized. Based on Kroger's last two financial statements, I need information on the long-term debt held by the corporation, maturity dates and yield to maturity.
I must list the types of stock issued by the company, the stocks' current selling price, and the 52-week average selling price, compute the weighted average cost of capital (WACC) for both years and discuss my findings.
My information must include a brief analysis that summarizes the data gathered and evaluates how Kroger compares to industry averages.
Should I buy this company's stock and why?
All I have for reference is :
http://www.annualreports.com where one of the other reports can be found and the attached. Kroger's 2007 Annual report is on page 74.