Natsam corporation has 250 million of excess cash the firm, Finance Basics

+44 141 628 6080
[email protected]

Natsam corporation has 250 million of excess cash the firm

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. Natsamâ's board has decided to payout this cash as a one-time dividend.

a. What is the ex-dividend price of a share in a perfect capital market?

b. If the board instead decided to use the cash to do a one-time share repurchase, in a perfect capital market, what is the price of the shares once the repurchase is complete?

c. In a perfect capital market, which policy in part (a) or (b) makes investors in the firm better off?

View Complete Question

Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Natsam corporation has 250 million of excess cash the firm

Reference No:- TGS0606475

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : Initially firm a has a beta of 13 when rrf 7 percent and

Initially Firm A has a beta of 1.3, when Rrf= 7 percent and Rm=12 percent. The firm now sells 10 percent of its assets (beta=1.2) and uses the proceeds to purchase another asset, a sanding machine, with a beta of .7.

Q : Suppose a pion is moving at a speed of 0986c and an

Suppose a pion is moving at a speed of 0.986c, and an observer who is stationary in a laboratory measures the pion's lifetime to be2.7 × 10-8 s. What is the lifetime according to a hypothetical person who is riding along with the pion

Q : Microeconomics bacc107 in the study of microeconomic the

Microeconomics BACC107, In the study of Microeconomic, the question "How to produce" is one of the basic economic problems (BEPs). Using an example, discuss this concept. In your discussion, you must also discuss the rationale behind the princip

Q : How would the use of cultural economic and political

How would the use of cultural, economic and political turnings enhance your understanding of how global turnings are impacting your ability to make sense of organizations in which you work, serve, and take an interest? Provide details and support for

Q : Natsam corporation has 250 million of excess cash the firm

Q : A high-pressure gas cylinder contains 500 l of toxic gas at

A high-pressure gas cylinder contains 50.0 L of toxic gas at a pressure of 1.80 ? 107 N/m2 and a temperature of 23.0°C. What is the final pressure if one-tenth of the gas escapes

Q : What impact has the mass media had on your family system

What impact has the mass media had on your family system and what does the graph on "Favorite Ways to Spend an Evening" tell us about contemporary family life?

Q : Suppose that all capital gains are taxed at a 25 rate and

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.

Q : The unit impulse response of an ltic systems is ht 1-

The unit impulse response of an LTIC systems is h(t) = (1- 2t)e^-2t * u(t) Find this system's (zero-state) response y(t) if the input x(t) is: 1) u(t) 2) e^-t u(t) 3) e^-2t u(t) 4) sin(3t) u(t)

1952076

Questions
Asked

3,689

Active Tutors

1428867

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Natsam corporation has 250 million of excess cash the firm

Reference No:- TGS0606475

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Initially firm a has a beta of 13 when rrf 7 percent and

Q : Suppose a pion is moving at a speed of 0986c and an

Q : Microeconomics bacc107 in the study of microeconomic the

Q : How would the use of cultural economic and political

Q : Natsam corporation has 250 million of excess cash the firm

Q : A high-pressure gas cylinder contains 500 l of toxic gas at

Q : What impact has the mass media had on your family system

Q : Suppose that all capital gains are taxed at a 25 rate and

Q : The unit impulse response of an ltic systems is ht 1-

Identify one antecedent, one behaviour, and one consequence

Is lifespan psychologists are unlikely to investigate

Describe the results, including any scores

How we perceive objects in the real world

Provide reasons why working from a person centred

Discuss social worker working with foster children

Describe some of your personality traits

Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Natsam corporation has 250 million of excess cash the firm

Reference No:- TGS0606475

Recent Questions Asked Finance Basics

Q : Initially firm a has a beta of 13 when rrf 7 percent and

Q : Suppose a pion is moving at a speed of 0986c and an

Q : Microeconomics bacc107 in the study of microeconomic the

Q : How would the use of cultural economic and political

Q : Natsam corporation has 250 million of excess cash the firm

Q : A high-pressure gas cylinder contains 500 l of toxic gas at

Q : What impact has the mass media had on your family system

Q : Suppose that all capital gains are taxed at a 25 rate and

Q : The unit impulse response of an ltic systems is ht 1-

Asked Questions