Tucker's National Distributing has a current market value of equity of $10,665. Currently, the firm has excess cash

Tucker's National Distributing has a current market value of equity of $10,665. Currently, the firm has excess cash of $640, total assets of $22,400, net income of $3,210, and 500 shares of stock outstanding. Tucker's is going to use all of its excess cash to repurchase shares of stock. What will the stock price per share be after the stock repurchase is completed?    A.  $20.87 B.  $20.94 C.  $21.06 D.  $21.33 E.  $21.42 Current price per share = $10,665/500 = $21.33 Number of shares repurchased = $640/$21.33 = 30 New number of shares outstanding = 500 - 30 = 470 New equity = $10,665 - $640 = $10,025 New price per share = $10,025/470 = $21.33

63.

The equity of Blooming Roses has a total market value of $16,000. Currently, the firm has excess cash of $1,400 and net income of $15,400. There are 750 shares of stock outstanding. What will be the percentage change in the stock price per share if the firm pays out all of its excess cash as a cash dividend?    A.  -9.40 percent B.  -8.75 percent C.  -7.50 percent D.  -2.75 percent E.  0.00 percent Price per share before cash dividend = $16,000/750 = $21.33 Price per share after cash dividend = ($16,000 - $1,400)/750 = $19.47 Percentage change in price = ($19.47 - $21.33)/$21.33 = -8.75 percent

64.

Delaware Trust has 450 shares of common stock outstanding at a market price per share of $27. Currently, the firm has excess cash of $400, total assets of $28,900, and net income of $1,320. The firm has decided to pay out all of its excess cash as a cash dividend. What will the earnings per share be after this dividend is paid?    A.  $2.69 B.  $2.86 C.  $2.93 D.  $3.07 E.  $3.24 Earnings per share = $1,320/450 = $2.93