Nancy Lau currently holds 10,000 shares in the Icicle Company that supplies air conditioning systems. Icicle has issued a total of 250,000 ordinary shares and no preference shares are issued. The firm most recently had earnings available for ordinary shareholders of $750,000, and its ordinary shares have been selling for $34.10 per share. The firm intends to retain these earnings and pay a 10 per cent share dividend. (a) What is the firm’s current earnings per share? (b) What proportion of the firm does Nancy Lau currently own? (c) What proportion of the firm will Nancy Lau own after the share dividend? (d) At what market price would you expect the firm’s ordinary shares to sell after the share dividend?
Nancy Lau currently holds 10,000 shares in the Icicle Company that supplies air conditioning systems
Solution:
15% off for this assignment.
Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!
Why US?
100% Confidentiality
Information about customers is confidential and never disclosed to third parties.
Timely Delivery
No missed deadlines – 97% of assignments are completed in time.
Original Writing
We complete all papers from scratch. You can get a plagiarism report.
Money Back
If you are convinced that our writer has not followed your requirements, feel free to ask for a refund.