Answer to Question #95161 in Finance for Lusanda Mrasi

Question #95161
In the form of an extra dividend to shareholders or embark on a share repurchase scheme. Current profits are R3.40 per share and their shares currently trade for R35. Their abbreviated balance sheet before paying out the dividend is as follows:

Equity 350 000 Bank/cash 130 000 Debt 120 000 Other assets 340 000 470 000 470 000 Evaluate each alternative(i.e. pay the dividend or repurchase the shares) by:Calculating the number of shares in issue.
1
Expert's answer
2019-09-25T08:33:14-0400

Equity 350 000 / R35 = 10 000 shares

Answer: 10 000 shares


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