FIN201 Corporate Finance - What are the different ways

Corporate Finance (FIN-201)

Q1. What are the different ways available for the corporations to distribute income among the shareholders? Suppose a firm promises to pay dividends of $200,000 every year in perpetuity with 200,000 shares outstanding. Assume a discount rate of 11.1%. What is the present value of one of the firm’s shares?

Q2. What is Stock repurchase? Explain the four ways to implement stock repurchase.

Q3. Calculate the rate at which a firm can grow without changing its leverage if its payout ratio is 30%; equity outstanding at the beginning of the year is $9,500,000; and its net income for the year is $2,000,000.

Q4. What do you mean by Long term financial planning? Take an example and explain the sales percentage model of financial planning.