Telluride Miningâs equity has a market value of $25 million with 800,000 shares outstanding. The book value of its equity is $15 million.
What is Tellurideâs stock price per share? What is its book value per share?
If the company repurchases 20% of its shares in the stock market at their current price, how will this affect the book value of equity if all else remains the same?
If there are no taxes or transaction costs, and investors do not change their perceptions of the firm, what should the market value of the firm be after the repurchase?
Instead of a share repurchase, the company decides to raise money by selling an additional 10% of its share on the market. If it can issue these additional shares at the current market price, how will this affect the book value of equity if all else remains the same?
If there are no taxes or transaction costs, and investors do not change their perception of the firm, what should the market value of the firm be after this stock issuance? Its price per share?
Telluride Miningâs equity has a market value of $25 million with 800,000 shares outstanding. The book value of its equity is $15 million.
What is Tellurideâs stock price per share? What is its book value per share?
If the company repurchases 20% of its shares in the stock market at their current price, how will this affect the book value of equity if all else remains the same?
If there are no taxes or transaction costs, and investors do not change their perceptions of the firm, what should the market value of the firm be after the repurchase?
Instead of a share repurchase, the company decides to raise money by selling an additional 10% of its share on the market. If it can issue these additional shares at the current market price, how will this affect the book value of equity if all else remains the same?
If there are no taxes or transaction costs, and investors do not change their perception of the firm, what should the market value of the firm be after this stock issuance? Its price per share?
Related questions
[The following information applies to the questionsdisplayed below.]
Raphael Corporationâs common stock is currently selling on astock exchange at $191 per share, and its current balance sheetshows the following stockholdersâ equity section: |
| Preferred stockâ5% cumulative, $___ par value, 1,000shares authorized, issued, and outstanding | $ | 55,000 |
| Common stockâ$___ par value, 4,000 shares authorized,issued, and outstanding | 140,000 | |
| Retained earnings | 370,000 | |
| Total stockholders' equity | $ | 565,000 |
1. What is the current market value (price) ofthis corporationâs common stock?
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2. What are the par values of the corporation'spreferred stock and its common stock?
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3. If no dividends are in arrears, what are thebook values per share of the preferred stock and the commonstock?
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4. If two years' preferred dividends are inarrears, what are the book values per share of the preferred stockand the common stock?
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5. If two yearsâ preferred dividends are inarrears and the preferred stock is callable at $65 per share, whatare the book values per share of the preferred stock and the commonstock?
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6.1 If two yearsâ preferred dividends are inarrears and the board of directors declares cash dividends of$17,900, what total amount will be paid to the preferred and to thecommon shareholders?
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Raphael Corporationâs common stock is currently selling on astock exchange at $171 per share, and its current balance sheetshows the following stockholdersâ equity section:
| Preferredstockâ5% cumulative, $___ par value, 1,000 shares authorized, issued, and outstanding | $ | 85,000 |
| Commonstockâ$___ par value, 4,000 shares authorized, issued, and outstanding | 200,000 | |
| Retainedearnings | 340,000 | |
Total stockholders' equity | $ | 625,000 |
| 1. What is the current market value (price) ofthis corporationâs common stock? 2. What are the par values of the corporationâspreferred stock and its common stock? 3. If no dividends are in arrears, what is thebook value per share of common stock? 4. If two yearsâ preferred dividends are inarrears, what is the book value per share of common stock? 5.1 If two yearsâ preferred dividends are inarrears and the board of directors declares cash dividends of$20,850, what total amount will be paid to the preferred and to thecommon shareholders? | ||
