Problem 17.01 – Dividends & Taxes
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
Given a dividend per share, tax rate, and stock selling price…. figure out the ex-dividend price.
Given a dividend per share, tax rate, and stock selling price…. figure out the ex-dividend price.
You are told the amount you have on deposit and then you either write a check or deposit a check. Determine the type of float, the available balance, and the book balance for the firm.
Given the owners’ equity accounts (common stock, capital surplus, retained earnings)… figure out how many new shares there will be along with how the equity accounts change.
You are given the amount you have on deposit, then you write a check and also deposit a check. Determine the disbursement float, collection float, and net float.
Given the number of units of inventory, the price of each, and the supplier terms, determine how long you have to pay before the account is overdue and how much should you remit if you take the full period. What is the discount being offered? How quickly must you pay to get the discount? If you do take the discount, how much should you remit? If you don’t take the discount, how much interest are you paying implicitly? How many days’ credit are you receiving?
GIven the shares of stock outstanding, what the stock sells for per share, stock splits, and stock dividends… figure out the share price and new shares outstanding.
Given the amount of checks received, the total amount of the checks, the amount of days delayed, and the days in the month… find out the average daily float.
Given the shares outstanding, the market value balance sheet, and declared dividend… figure out stock price today and tomorrow along with the balance sheet after dividends are paid.
Given the total of the checks, clearing time, received payments, and clearing time for payments… figure out the disbursement float, collection float, and net float for both a and b.
Given units sold, price per unit, the terms, net, and discount… figure out average collection period, receivables turnover, and average receivables.