Questions from Financial Management

Q: Wilson Pharmaceuticals’ stock has done very well in the market during the

Wilson Pharmaceuticals’ stock has done very well in the market during the last three years. It has risen from $55 to $80 per share. The firm’s current statement of...

Q: Ace Products sells marked playing cards to blackjack dealers. It has

Ace Products sells marked playing cards to blackjack dealers. It has not paid a dividend in many years, but is currently contemplating some kind of dividend. The capital accounts for the firm are as f...

Q: Health Systems Inc. is considering a 15 percent stock dividend.

Health Systems Inc. is considering a 15 percent stock dividend. The capital accounts are as follows: The company’s stock is selling for $32 per share. The company had total earning...

Q: Worst Buy Company has had a lot of complaints from customers of

Worst Buy Company has had a lot of complaints from customers of late and its stock price is now only $2 per share. It is going to employ a one-for-five reverse stock split to increase the stock value....

Q: The Carlton Corporation has $5 million in earnings after taxes and

The Carlton Corporation has $5 million in earnings after taxes and 2 million shares outstanding. The stock trades at a P/E of 20. The firm has $4 million in excess cash. a. Compute the current price o...

Q: The Hastings Sugar Corporation has the following pattern of net income each

The Hastings Sugar Corporation has the following pattern of net income each year, and associated capital expenditure projects. The firm can earn a higher return on the projects than the stockholders c...

Q: In what way is an investment banker a risk taker?

In what way is an investment banker a risk taker?

Q: Polycom Systems earned $553 million last year and paid out 25

Polycom Systems earned $553 million last year and paid out 25 percent of earnings in dividends. a. By how much did the company’s retained earnings increase? b. With 100 million shares outstanding and...

Q: The following companies have different financial statistics. What dividend policies would

The following companies have different financial statistics. What dividend policies would you recommend for them? Explain your reasons.

Q: Planetary Travel Co. has $240,000,000 in

Planetary Travel Co. has $240,000,000 in stockholders’ equity. Eighty million dollars is listed as common stock and the balance is in retained earnings. The firm has $500,000,000 in total assets and 2...