# Corporate Finance

Could you answer these 4 multipl choices questions?

1- The
Cincinnati Chili Kitchen has just announced the repurchase of \$90,000
of its stock. The company has 32,000 shares outstanding and earnings per
share of \$3.15. The company stock is currently selling for \$75.18 per
share. What is the price–earnings ratio after the repurchase?

A- 22.32 times B- 22.97 times C-24.31 times D-23.87 times E- 24.76 times

2- Westhaven Corp. currently has 29,000
shares outstanding that sell for \$61 per share. The company plans to
issue a stock dividend of 20 percent. The stock has a par value of \$3.
What is the total capital surplus on the new shares?

A- \$17,400 B- \$353,800 C- \$368,300 D-\$336,400 E-\$278,400

3- Bowzer Co. has just received \$3.1
million from the sale of one of its divisions. The company has 395,000
shares outstanding that sell for \$84.69 per share. If the company issues
the entire proceeds from the sale as a special dividend, what will the
ex-dividend stock price be? Ignore taxes.

A- \$84.56 B- \$92.54 C-\$84.69 D- \$76.84 E-\$78.76

4- Boats and Bait has 74,000 shares
outstanding that sell for a price of \$70 per share. The stock has a par
value of \$2 per share. The company’s balance sheet shows capital surplus
of \$165,000 and retained earnings of \$205,000. If the company declares a
stock dividend of 20 percent, what is the new common stock value on the
balance sheet?

A- \$375,600 B- \$177,600 C- \$444,000 D- \$198,000 E- \$621,600