{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

S07Assg8

# S07Assg8 - FIN 2200 CORPORATION FINANCE Term 2 2006/2007...

This preview shows pages 1–2. Sign up to view the full content.

FIN 2200 – CORPORATION FINANCE Term 2, 2006/2007 Professors: A. Dua Assignment #8 NOTE: This assignment is NOT to be handed in! 1. Several weeks ago, the board of directors of Gordon Enterprises (GE) declared a dividend of \$3.25 per share. Shareholders of record will receive their dividend at noon 43 days from today. The effective rate of return per year for GE is 25%. Suppose it is 11:59:59 a.m. and the stock goes ex-dividend at noon today. By how much would the stock price drop (all else equal) at the instant the stock goes ex-dividend? (Give answer to 6 decimal places.) (\$3.165677) 2. Canadian Amalgamated Corp. (CAC), a company registered in Ontario, has 750 million shares outstanding. There are 100 million shares held as treasury shares (note: these cannot be voted). There are 11 seats on the board of directors and cumulative voting is used. a) How many shares are issued? (850 million) b) Suppose you own 5% of the outstanding shares and you wish to allocate an equal number of votes to each of 2 candidates. Assuming all 11 seats are up for election,

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 2

S07Assg8 - FIN 2200 CORPORATION FINANCE Term 2 2006/2007...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online