essaynest EssayNest

Good Values Inc. is all-equity-financed. The total market value of the firm currently is…

Get your original paper written from scratch starting at just $10 per page with a plagiarism report and free revisions included!

4.8

rating

SiteJabber

4.9

rating

ResellerRatings

4.9

rating

Reviews.io

Hire A Writer
Good Values Inc. is all-equity-financed. The total market value of the firm currently is $150,000, and there are 2,500 shares outstanding. Ignore taxes. a. The firm has declared a $4 per share dividend. The stock will go ex-dividend tomorrow. At what price will the stock sell today? b. At what price will the stock sell tomorrow? c. Now assume that the tax rate on all dividend income is 35% and the tax rate on capital gains is zero. At what price will the stock sell today, taking account of the taxation of dividends? (Do not round intermediate calculations. Round your answer to 2 decimal places.) d. Now suppose that instead of paying a dividend, Good Values plans to repurchase $15,000 worth of stock. What will be the stock price before the repurchase? e. What will it be after the repurchase? f. Does the existence of taxes tend to favor dividends or repurchases? a. Stock price b. Stock price c. Stock price d. Stock price e. Stock price f. Does the existence of taxes tend to favor dividends or repurchases?

Get your paper done by an expert.