Finance

Case 1 - Sh ar Buy post or Dividend fee (cont) Required: 1. (2 marks) Assume that the off-market buy-back occurs at precisely $44.00 minus the 14% discount. (i) How many bundles will be bought back? suffice Buy-back expenditure per component=$44*(1-14%)=$37.84 So 132,320,296 conducts will be bought back ($5.007 billion/$37.84=132,320,296 shares) (ii) What will be the theoretical wrong per share immediately fol downcasting the buy-back? nitty-gritty 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 well-kept for the future(a) 12 months at the same total amount as for the past 12 months, what will be the divid end 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 ($0.9832490566) 2. (4 marks) For each(prenominal) of the 8 shareholder types assume a shareholder with 1,000 shares, thence work out: (i) How much better off (or worse off) they are to simulate the offer, versus rejecting the offer and keeping their shares). [$ amount] 1.

Australian shareholders are entitle to single-valued function franking credits Dividend component and franking credit? Cash dividend per share (buy-back dama ge - $0.28= $37.84-$0.28) $37.56 Ef! fective dividend ($37.56/0.7) $53.66 Franking credit (53.66*0.3) $16.10 Capital component and capital hold up revenue enhancement: 1.1Australian shareholders Capital gain | 1.Zero revenue enhancement| 2. low tax footstep| 3.medium tax rate| 4. high tax rate| Capital proceed for tax purpose | $6,440| $6,440| $6,440| $6,440| little: bell of shares| $(30,000)| $(30,000)|...If you want to get a full essay, coif it on our website: BestEssayCheap.com

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