Examlex

Solved

Ted Tech Inc

question 160

Essay

Ted Tech Inc.is offering a 10% stock dividend.The firm currently has 200,000 shares outstanding and after-tax profits of $800,000.The current price of the stock is $48.
a.Calculate the new earnings per share.
b.What is the original price/earnings multiple?
c.Providing that the price/earnings multiple stays the same,what will the new stock price be after the stock dividend?


Definitions:

Rival

An entity engaged in competition for the same objective or for superiority in the same field.

Public Good

Goods that are non-excludable and non-rivalrous, meaning that individuals cannot be effectively excluded from use and where use by one individual does not reduce availability to others.

Nonexcludable

Nonexcludable goods are those that cannot feasibly or reasonably be kept from individuals who do not pay for them, one of the characteristics of public goods.

Nonrival

A characteristic of a good whereby one person's consumption does not prevent or decrease the ability of others to enjoy it as well.

Related Questions