the answer that is correct is a) Fast. The reasoning behind this can be guessed quite easily. Primarily, individuals tend to be risk-averse when it comes to valuing their money, which means they generally avoid taking risks. Even though opportunities that promise higher profits, increased visibility, or greater monetary rewards seem enticing initially, they inherently come with unavoidable risks, and there is always a possibility that such opportunities may not yield the expected outcomes. That being said, raising funds rapidly becomes a challenging task.
After the dividend, the company's:
a. book value per share will become $6.31.
b. price-earnings ratio will adjust to 13.88.
c. shareholder value per share will amount to $18.60.
d. stock price will be $19.00.
e. earnings per share will equal $.94.
The result is: b
To determine the ex-dividend price per share on the day the dividend is distributed, we follow this method:
Ex-dividend Price = Share price before dividend - dividend amount per share
Ex-dividend price = $18.6 ($19 - $0.40)
Using this ex-dividend price, we can calculate the P/E ratio after the dividend.
P/E = $18.6/$1.34 = 13.88059
In this scenario, the handler company receives a $21.85 discount (1% of the amount borrowed) for settling their payment within 15 days. Consequently, rather than sending the full sum of $2,185 to Ellen Co., they will only remit $2,163.15, which is $21.85 less than the initial amount due, taking advantage of the 1% discount.
Answer:
The solution and relevant data for the exercise are contained within three images. The maximum profit amounts to 262.500.
Explanation
Please take into account the details provided in the exercise. Should you have any queries, feel free to reach out again. All the exercises are illustrated within three images.
