| UNIT 5: TEXTBOOK PROBLEMS |
| CHAPTER 16: PROBLEM 1 |
| Dividend | $7.25 |
| Dividend Tax | 25% |
| Stock Price | $79 |
| Step 1: Calculate the After-Tax Dividend |
| Step 2: Ex-Dividend Price = |
| CHAPTER 16: PROBLEM 4 (a thru d) |
| # of shares of stock outstanding | 310,000 |
| Stock Price | $91 |
| A. | | 5 |
| | | 3 |
| B. | | 1 |
| | | 1.15 |
| C. | | 1 |
| | | 1.425 |
| D. | | 4 |
| | | 7 |
| CHAPTER 16: PROBLEM 7 |
| Stock Dividend | 25% |
| # of shares of stock outstanding | 28,000 |
| Market Value Balance Sheet: |
| Cash | $149,000 |
| Fixed Assets | $603,000 |
| Total | $752,000 |
| Debt | $127,000 |
| Equity | $625,000 |
| Total | $752,000 |
| Find the market price of stock by using the equity and # of shares outstanding |
| New shares outstanding = |
| New Stock price = |
| CHAPTER 16: PROBLEM 16a |
| Dividend | $2.65 |
| Payout Ratio | 50% |
| Earnings Per Share | $6.30 |
| Adjustment Rate | 0.3 |
| Dividend 1 year from now = |