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
Answer:
The answer is $59.50.
Explanation:
The calculations based on the scenario are as follows:
Profit on futures price = After futures price - before futures price
$63.50 - $59
= $4.50
Thus, the effective price that the company pays can be calculated using this formula:
Effective price paid = Spot price in July - Gain on futures price
= $64 - $4.50
= $59.50
Answer:
Based on the calculations, the amount is $135,000.
Explanation:
Book value of the acquiring company's inventory before the merger = $90,000
Fair value of the acquired inventory = $45,000
Total inventory value post-business combination = $90,000 + $45,000 = $135,000
Thus, the total amount is $135,000
