Student name:
1) You own 340 shares of stock in Halestorm, Incorporated, that currently sells for $84.85
per share. The company has announced a dividend of $3.85 per share with an ex-dividend date of
February 4. Assuming no taxes, what is the value of the stock on February 4?
1)
A) $82.92
B) $88.70
C) $79.95
D) $81.00
E) $84.85
Question Details
Difficulty : 1 Basic
Topic : Cash dividends
Learning Objective : 17-01 Define dividend types and how dividends are paid.
Section : 17.1 Cash Dividends and Dividend Payment
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Bloom's : Understand
2) You own 100 shares of stock in Green Mild Chili Peppers, Incorporated, that currently
sellfor $47.45 per share. The company has announced a dividend of $1.81 per share with an ex-
dividend date of May 3. Assuming no taxes, what is the value of your portfolio on May 3?
2)
A) $4,839.00
B) $4,564.00
C) $181.00
D) $4,745.00
E) $4,420.00
,Question Details
Difficulty : 1 Basic
Topic : Cash dividends
Learning Objective : 17-01 Define dividend types and how dividends are paid.
Section : 17.1 Cash Dividends and Dividend Payment
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Bloom's : Understand
3) A company has declared a dividend of $7.35 per share on its stock. Capital gains are not
taxed. Suppose the IRS has issued a new regulation that requires taxes of 15 percent be withheld
at the time the dividend is paid. The stock currently sells for $119.95 per share. What will the ex-
dividend price be?
3)
A) $113.70
B) $118.85
C) $112.60
D) $116.28
E) $119.95
Question Details
Difficulty : 1 Basic
Topic : Cash dividends
Learning Objective : 17-01 Define dividend types and how dividends are paid.
Section : 17.1 Cash Dividends and Dividend Payment
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Bloom's : Understand
4) The stock of Red's Hardware closed at $58.10 per share today. Tomorrow morning, the
stock goes ex-dividend, paying a dividend of $1.90 per share. The tax rate on dividends is 25
percent. All else the same, what price will the stock open at tomorrow morning?
4)
, A) $56.20
B) $56.68
C) $58.10
D) $57.63
E) $57.15
Question Details
Difficulty : 1 Basic
Topic : Cash dividends
Learning Objective : 17-01 Define dividend types and how dividends are paid.
Section : 17.1 Cash Dividends and Dividend Payment
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Bloom's : Understand
5) A firm has a market value equal to its book value. Currently, the firm has excess cash of
$6,000 and other assets of $15,000. Equity is worth $21,000. The firm has 200 shares of stock
outstanding and net income of $1,600. What will the stock price per share be if the firm pays out
its excess cash as a cash dividend?
5)
A) $20
B) $83
C) $91
D) $28
E) $75
Question Details
Difficulty : 1 Basic
Topic : Cash dividends
Learning Objective : 17-01 Define dividend types and how dividends are paid.
Section : 17.1 Cash Dividends and Dividend Payment
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Bloom's : Understand
, 6) Bowzer Company has just received $4.2 million from the sale of one of its divisions. The
company has 450,000 shares outstanding that sell for $86.23 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.
6)
A) $86.23
B) $76.90
C) $95.56
D) $86.12
E) $78.82
Question Details
Difficulty : 1 Basic
Topic : Cash dividends
Learning Objective : 17-01 Define dividend types and how dividends are paid.
Section : 17.1 Cash Dividends and Dividend Payment
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Bloom's : Understand
7) Storico currently has 37,000 shares outstanding that sell for $48.18 per share. The
company plans to issue a stock dividend of 15 percent. How many new shares will be issued?
7)
A) 37,000 shares
B) 42,550 shares
C) 5,800 shares
D) 5,550 shares
E) 5,690 shares
1) You own 340 shares of stock in Halestorm, Incorporated, that currently sells for $84.85
per share. The company has announced a dividend of $3.85 per share with an ex-dividend date of
February 4. Assuming no taxes, what is the value of the stock on February 4?
1)
A) $82.92
B) $88.70
C) $79.95
D) $81.00
E) $84.85
Question Details
Difficulty : 1 Basic
Topic : Cash dividends
Learning Objective : 17-01 Define dividend types and how dividends are paid.
Section : 17.1 Cash Dividends and Dividend Payment
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Bloom's : Understand
2) You own 100 shares of stock in Green Mild Chili Peppers, Incorporated, that currently
sellfor $47.45 per share. The company has announced a dividend of $1.81 per share with an ex-
dividend date of May 3. Assuming no taxes, what is the value of your portfolio on May 3?
2)
A) $4,839.00
B) $4,564.00
C) $181.00
D) $4,745.00
E) $4,420.00
,Question Details
Difficulty : 1 Basic
Topic : Cash dividends
Learning Objective : 17-01 Define dividend types and how dividends are paid.
Section : 17.1 Cash Dividends and Dividend Payment
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Bloom's : Understand
3) A company has declared a dividend of $7.35 per share on its stock. Capital gains are not
taxed. Suppose the IRS has issued a new regulation that requires taxes of 15 percent be withheld
at the time the dividend is paid. The stock currently sells for $119.95 per share. What will the ex-
dividend price be?
3)
A) $113.70
B) $118.85
C) $112.60
D) $116.28
E) $119.95
Question Details
Difficulty : 1 Basic
Topic : Cash dividends
Learning Objective : 17-01 Define dividend types and how dividends are paid.
Section : 17.1 Cash Dividends and Dividend Payment
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Bloom's : Understand
4) The stock of Red's Hardware closed at $58.10 per share today. Tomorrow morning, the
stock goes ex-dividend, paying a dividend of $1.90 per share. The tax rate on dividends is 25
percent. All else the same, what price will the stock open at tomorrow morning?
4)
, A) $56.20
B) $56.68
C) $58.10
D) $57.63
E) $57.15
Question Details
Difficulty : 1 Basic
Topic : Cash dividends
Learning Objective : 17-01 Define dividend types and how dividends are paid.
Section : 17.1 Cash Dividends and Dividend Payment
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Bloom's : Understand
5) A firm has a market value equal to its book value. Currently, the firm has excess cash of
$6,000 and other assets of $15,000. Equity is worth $21,000. The firm has 200 shares of stock
outstanding and net income of $1,600. What will the stock price per share be if the firm pays out
its excess cash as a cash dividend?
5)
A) $20
B) $83
C) $91
D) $28
E) $75
Question Details
Difficulty : 1 Basic
Topic : Cash dividends
Learning Objective : 17-01 Define dividend types and how dividends are paid.
Section : 17.1 Cash Dividends and Dividend Payment
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Bloom's : Understand
, 6) Bowzer Company has just received $4.2 million from the sale of one of its divisions. The
company has 450,000 shares outstanding that sell for $86.23 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.
6)
A) $86.23
B) $76.90
C) $95.56
D) $86.12
E) $78.82
Question Details
Difficulty : 1 Basic
Topic : Cash dividends
Learning Objective : 17-01 Define dividend types and how dividends are paid.
Section : 17.1 Cash Dividends and Dividend Payment
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Bloom's : Understand
7) Storico currently has 37,000 shares outstanding that sell for $48.18 per share. The
company plans to issue a stock dividend of 15 percent. How many new shares will be issued?
7)
A) 37,000 shares
B) 42,550 shares
C) 5,800 shares
D) 5,550 shares
E) 5,690 shares
