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Author Question: A stock repurchase may be viewed as A) a dividend decision when the firm has excess cash. B) a ... (Read 43 times)

imowrer

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A stock repurchase may be viewed as
 
  A) a dividend decision when the firm has excess cash.
  B) a financing decision when the firm wants to alter its capital structure.
  C) an operating leverage decision.
  D) both A and B.

Question 2

The Textbook Production Company has been hit hard due to increased competition. The company's analysts predict that earnings (and dividends) will decline at a rate of 5 annually forever. Assume that Ks = 11 and Do = 2.00.
 
  What will the price of the company's stock be three years from now?
  A) 27.17
  B) 6.23
  C) 28.50
  D) 10.18
  E) 20.63



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jessicaduplan

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Answer to Question 1

D

Answer to Question 2

D




imowrer

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Reply 2 on: Jul 10, 2018
YES! Correct, THANKS for helping me on my review


Viet Thy

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Reply 3 on: Yesterday
Wow, this really help

 

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