This paper circulates around the core theme of The Dunn Corporation is planning to pay dividends of $480,000. There are 240,000 shares outstanding, and earnings per share are $6. The stock should sell for $52 after the ex-dividend date. If, instead of paying a dividend, the firm decides to repurchase together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
The Dunn Corporation is planning to pay dividends of $480,000.
There are 240,000 shares outstanding, and earnings per share are $6. The stock should sell for
$52 after the ex-dividend date. If, instead of paying a dividend, the firm decides to repurchase
stock.
a. What should be the repurchase price/
b. How many shares should be repurchased?
c. What if the repurchase price is set bellow or above your suggested price in part (a)?
d. If you own 100 shares, would you prefer that the company pay the dividend or repurchase
