corporate finance 26

Could you answer these 4 multipl choices questions?

1- The Cincinnati Chili Kitchen has just announced the repurchase of $90,000 of its stock. The company has 32,000 shares outstanding and earnings per share of $3.15. The company stock is currently selling for $75.18 per share. What is the price–earnings ratio after the repurchase?

A- 22.32 times B- 22.97 times C-24.31 times D-23.87 times E- 24.76 times

2- Westhaven Corp. currently has 29,000 shares outstanding that sell for $61 per share. The company plans to issue a stock dividend of 20 percent. The stock has a par value of $3. What is the total capital surplus on the new shares?

A- $17,400 B- $353,800 C- $368,300 D-$336,400 E-$278,400

3- Bowzer Co. has just received $3.1 million from the sale of one of its divisions. The company has 395,000 shares outstanding that sell for $84.69 per share. If the company issues the entire proceeds from the sale as a special dividend, what will the ex-dividend stock price be? Ignore taxes.

A- $84.56 B- $92.54 C-$84.69 D- $76.84 E-$78.76

4- Boats and Bait has 74,000 shares outstanding that sell for a price of $70 per share. The stock has a par value of $2 per share. The company’s balance sheet shows capital surplus of $165,000 and retained earnings of $205,000. If the company declares a stock dividend of 20 percent, what is the new common stock value on the balance sheet?

A- $375,600 B- $177,600 C- $444,000 D- $198,000 E- $621,600

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