Finance

Case 1 - Sh ar Buy post or Dividend fee (cont) Required: 1. (2 marks) contain that the impinge on-market corrupt-back occurs at precisely $44.00 subtraction the 14% discount. (i) How many bundles testament be bought back? firmness Buy-back expenditure per role=$44*(1-14%)=$37.84 So 132,320,296 carry ons impart be bought back ($5.007 billion/$37.84=132,320,296 donations) (ii) What exit be the theoretical misemploy per share immediately chase the buy-back? center value of shares (after buyback)=3,358,359,496*$44-$5.007billion Total shares salient (after buyback) = 3,358,359,496-132,320,296 Price per share= 3,358,359,496*$44-$5.007billion/ (3,358,359,496-132,320,296) =$44.25 ($44.25266061) (iii) If total dividend payments are maintain for the future(a) 12 months at the similar total amount as for the past 12 months, what will be the dividend per share? Dividend per share=$3.172billion/3,358,359,496-132,320,296 (total amount of shares after buy back) = 98.32 cent per share ($0.9832490566) 2. (4 marks) For each(prenominal) of the 8 shareholder types assume a shareholder with 1,000 shares, thence roll: (i) How much better off (or worse off) they are to stick out the offer, versus rejecting the offer and keeping their shares). [$ amount] 1.

Australian shareholders are entitle to white plague franking credits Dividend component and franking credit? cash dividend per share (buy-back price - $0.28= $37.84-$0.28) $37.56 in force(p) dividend ($37.56/0.7) $53.66 Franking credit (53.66*0.3) $16.10 Capital component and capital substantiate appraise enhancement: 1.1Australian shareholders Capital elevate | 1.Zero task| 2. low tax footstep| 3.medium tax consecrate| 4. high tax rate| Capital proceed for tax purpose | $6,440| $6,440| $6,440| $6,440| Less: buzzer of shares| $(30,000)| $(30,000)|...If you want to get a full essay, order it on our website: Ordercustompaper.com

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