DEVRY FIN 516 Week 1 Homework

1
DEVRY FIN 516 Week 1 Homework

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• FIN 516 Week 1 Homework
• Problem 17-7 on Ex-dividend Price Based on
  Chapter 17 Payout Policy
• Natsam Corporation has 250 million of excess
  cash. The firm has no debt and 500 million shares
  outstanding with a current market price of 15
  per share. Natsams board has decided to pay out
  this cash as a one-time dividend.
• Problem 17-15 on Distribution to Shareholders
  Based on Chapter 17 Payout Policy
• Suppose that all capital gains are taxed at a 25
  rate and that the dividend tax rate is
  50.Arbuckle Corporation is currently trading
  for 30 and is about to pay a 6 special
  dividend.
• Problem 17-19 on Dividend Capture Strategy Based
  on Chapter 17 Payout Policy
• Que Corporation pays a regular dividend of 1 per
  share. Typically, the stock price drops by 0.80
  per share when the stock goes ex-dividend.
  Suppose the capital gains tax rate is 20, but
  investors pay different tax rates on dividends.
• Absent transactions costs, what is the highest
  dividend tax rate of an investor who could gain
  from trading to capture the dividend?
• Problem 23-5 on Preferred Stock Based on Chapter
  23 Raising Equity Capital
• Three years ago, you founded your own company.
  You invested 100,000 of your money and received
  5 million shares of Series A preferred stock.
  Since then, your company has been through three
  additional rounds of financing.
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