Natsam corporation has 300 million of excess cash the firm, Ask an Expert

Finance

Natsam Corporation has $300 million of excess cash. The firm has no debt and 600 million shares outstanding with a current market price of $19 per share. Suppose the board decided to do a? one-time share? repurchase, but? you, as an? investor, would have preferred to receive a dividend payment. How can you leave yourself in the same position as if the board had elected to make the dividend payment? instead?

Which of the following is true regarding the effect of a? one-time share repurchase on the stock? price? (Select the best choice)

A. An? open-market share repurchase has no effect on the stock price.

B. An? open-market share repurchase decreases the stock price because the? firm's assets decline by the amount of the purchases of the shares.

C. An? open-market share repurchase increases the stock price due to the decrease in shares in the marketplace.

D. An? open-market share repurchase has no effect on the stock? price, but the stock price is not the same as the? cum-dividend price if a dividend were paid instead.

To receive your? dividend, the percentage of your shares you should sell is ????%. (Round to two decimal places.)

View complete question

Financial Management, Finance

Category:- Financial Management
Reference No.:- M92344236

Have any Question?Write your Review or question?

Related Questions in Financial Management

Managerial financenbspplease submit a word document

Managerial Finance: Please submit a Word document including your answers to the 4 questions at the end of the instructions. Johnson Company The Johnson company and wants to increase its sales and would like to seek ad ...

In a minimum of two pages not counting the title and

In a minimum of two pages (not counting the title and reference pages), address how you would respond to the following points: Do you believe Carl is aware that he is a follower as well as the first shift supervisor? If ...

Please respond to the followingnbsp under 300 wordsa

Please respond to the following: UNDER 300 Words a) Justify why a small investor would benefit from investing in a mutual fund, as compared to the many other investments that exist. Provide support for your justificatio ...

Assignment 11set up an amortization schedule in excel that

Assignment 1 1. Set up an amortization schedule in Excel that caters to possible prepayments (or excess payments). The loan details are: $38,500, 6.5% APR, 5 year loan with Monthly payments. Show, on the spreadsheet, the ...

You will be conducting an interview with a market research

You will be conducting an interview with a market research professional or a company representative. Use the results of your research to make specific recommendations on how market research can be applied to the Marketpl ...

Part aweek 1in order to properly implement a strategic plan

Part A Week 1: In order to properly implement a strategic plan, organizations use structure, various control systems (budgets, variance analysis, policies and procedures, company rules), and culture. Let us revisit Gener ...

Assignmentdirections answer the following questions on a

Assignment Directions: Answer the following questions on a separate document. Explain how you reached the answer, or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assig ...

Introductionlast week you determined the root causes of the

Introduction Last week, you determined the root cause(s) of the problem you are trying to resolve for your final paper. As a reminder, the decision you are working on is the one that you selected in week two. This week, ...

Watch the video moral imaginationand answer the following

Watch the video: "Moral Imagination" And Answer the following questions: 1. Can you think of a time when you or someone whom you know used moral imagination? If so, what motivated you (or this individual) to use moral im ...

Assignmentthe purpose of this assignment is to allow you

Assignment The purpose of this assignment is to allow you the chance to evaluate the role of social responsibility in society. After you complete this assignment, you will analyze a written article, be able to ascertain ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Financial Management Expert