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Use the following information to answer the following question(s) .
Your firm is planning to pay a 15% share dividend.The market price for the share has been $84.The table below presents the equity portion of your firm's balance sheet before the dividend.
Common share
-Five years ago, Ms.Lopez purchased 1000 shares of JPM stock at $50 per share.The market price of the share is now $55.If Ms.Lopez' tax rate is 25%, would she prefer that the company pay a $5.00 per share dividend or offer to repurchase 100 shares at the market price? Assume that after the ex-dividend date, the price would return to $50 per share, but a share repurchase would not affect the market price.
Incidental Damages
Incidental damages refer to the costs incurred by one party due to another's breach of contract, including expenses directly resulting from the breach, such as costs to find a replacement.
Installment Contract
A contractual arrangement where payment is made in parts over a period of time until the full purchase price is paid.
CISG
Stands for the United Nations Convention on Contracts for the International Sale of Goods, which governs the sale of goods between businesses in different countries.
Avoidance
A legal principle or action taken to invalidate or cancel a contract, thereby relieving the parties of their obligations under that contract.
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