$78,310 $121,000 $211,000 $191,000 $460,000 $627,790 $630,290 $110,971 Nine righ
ID: 2750964 • Letter: #
Question
$78,310
$121,000
$211,000
$191,000
$460,000
$627,790
$630,290
$110,971
Nine rights are necessary to purchase one share of Fogel stock at $49. A right sells for a $6. The ex-rights value of Fogel stock is
$108
$99
$111
$103
Tricki Corp stock sells for $75 rights-on, and the subscription price is $65. Ten rights are required to purchase one share. Tomorrow the stock of Tricki will go ex-rights. What is the price of Tricki expected to be when it begins trading ex-rights? (Round your answer to 2 decimal places.)
$76.09
$77.09
$74.09
$73.09
Kuhns Corp. has 240,000 shares of preferred stock outstanding that is cumulative. The dividend is $7.50 per share and has not been paid for 3 years. If Kuhns earned $1.80 million this year, what could be the maximum payment to the preferred stockholders on a per share basis? (Round your answer to 2 decimal places.)
$9.75 per share
$9.00 per share
$7.50 per share
$6.40 per share
Buggy Whip Manufacturing Company is issuing preferred stock yielding 16%. Selten Corporation is considering buying the stock. Buggy's tax rate is 0% due to continuing heavy tax losses, and Selten's tax rate is 32%. What is the after-tax preferred yield for Selten? (Round your answer to 2 decimal places.)
16.56
14.46
12.96
15.61
Assuming a tax rate of 41%, the after-tax cost of a $191,000 dividend payment isExplanation / Answer
1. $191000, dividend payment is after tax incident. So no tax impact will be there.
2.
3.ex rights value=9x6+49=$103
5. $7.5 per share that will be the maximum available for distribution. (1.8 million/240000)
Gross profit 840000 Depreciation 380000 SGA 111000 Tax@29% 101210 Net Profit 247790 Cash flow 627790Related Questions
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