1. New Built wants to repurchase 20,000 shares at $21 a share through a tender offer. Shareholders responded by offering 26,500 shares at $21 a share. Assume you are a shareholder and offered your 300 shares as part of the shareholder response. How many of your shares should you expect New Built to purchase?
0 shares
300 shares
398 shares
226 shares
251 shares
2. KLT just paid an annual dividend of $2.10 a share. The firm has a target payout ratio of .45 and a speed of adjustment value of .5. What is the expected value of next year's annual dividend if the firm expects its earnings per share to be $4.94?
$2.16
$2.22
$2.47
$1.24
$1.11