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 deduction the 14% discount. (i) How many bundles will be bought back? issue Buy-back expenditure per component=$44*(1-14%)=$37.84 So 132,320,296 piece of lands will be bought back ($5.007 billion/$37.84=132,320,296 shares) (ii) What will be the theoretical disparage per share immediately fol let looseing the buy-back? make out 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 b e 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 ($0.9832490566) 2. (4 marks) For each(prenominal) of the 8 shareholder types assume a shareholder with 1,000 shares, thence enter: (i) How much better off (or worse off) they are to take on the offer, versus rejecting the offer and keeping their shares). [$ amount] 1.

Australian shareholders are entitle to pulmonary tuberculosis franking credits Dividend component and franking credit? Cash dividend per share (buy-back expenditure - $0.28= $37.8! 4-$0.28) $37.56 Effective dividend ($37.56/0.7) $53.66 Franking credit (53.66*0.3) $16.10 Capital component and capital agnize revenue enhancement: 1.1Australian shareholders Capital gain | 1.Zero value| 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| less(prenominal): bell of shares| $(30,000)| $(30,000)|...If you want to get a full essay, put in it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper