Assume perfect capital markets. Kay Industries currently has $ 100 million invested in short-term Treasury securities paying 7 %, and it pays out the interest payments on these securities as a dividend. The board is considering selling the Treasury securities and paying out the proceeds as a one-time dividend payment. a. If the board went ahead with this plan, what would happen to the value of Kay stock upon the announcement of a change in policy? b. What would happen to the value of Kay stock on the ex-dividend date of the one-time dividend? c. Given these price reactions, will this decision benefit investors? a. If the board went ahead with this plan, what would happen to the value of Kay stock upon the announcement of a change in policy? (Select the best choice below.) A. It's difficult to tell because the price reaction depends on investor preferences. B. The value of Kay would rise by $ 100 million. C. The value of Kay would remain the same. D. The value of Kay would fall by $ 100 million.
Answers: 1
Business, 21.06.2019 21:20, jovonjones1234
Kahn company's static budget was based on sales volume of 12,000 units. its flexible budget was based on sales volume of 14,000 units. based on this information multiple choice the sales volume variance is expected to be unfavorable. the materials cost volume variance is expected to be favorable. the labor cost volume variance is expected to be unfavorable. none of the answers is correct.
Answers: 3
Business, 22.06.2019 19:20, Gabby2581
Win goods inc. is a large multinational conglomerate. as a single business unit, the company's stock price is estimated to be $200. however, by adding the actual market stock prices of each of its individual business units, the stock price of the company as one unit would be $300. what is win goods experiencing in this scenario? a. diversification discount b. learning-curveeffects c. experience-curveeffects d. economies of scale
Answers: 1
Assume perfect capital markets. Kay Industries currently has $ 100 million invested in short-term Tr...
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