Module 10: Numeric Questions

For students

Last updated: 14/11/2025 14:36

The questions are based on or inspired by the following references:

• Berk & DeMarzo, Corporate Finance, 5th ed. (2020)
  
• Brealey & Myers, Principles of Corporate Finance, 13th ed. (2020)

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💡 You can also press Ctrl + P (or Cmd + P on Mac) to print or save your responses as a .pdf file.

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⚠️ These exercises are powered by AI-assisted technologies and may contain occasional formatting or logic errors. Please report any issues you encounter so I can improve the experience.

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📙 Part 2 (Midterm to Final)

Module	Chapter	Slides	T/F	MCQ	Numeric	Long	Self-quiz
10	ch17	🎞️	✅	❓	🔢	📝	🧪

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Answer the following questions based on the discussions in class.

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Q1.

Dividend Payment and Share Price Adjustment

The firm has 15.64 million shares outstanding, and the market values it at 184.72 million. The dividend to be paid is 12.03 million. Calculate: (a) the price of Alpha Corp. today, assuming the dividend is paid out; and (b) the price of Alpha Corp. after the dividend is paid (ex-dividend price).

a. Price today ($):

✅ Price today = (Market value + Dividend value) / shares = 184.72 / 15.64 = 11.81.

b. Price after dividend (ex-dividend price) ($):

✅ Price after dividend = Market value / shares = 184.72 - 12.03 / 15.64 = 11.04.

Q2.

Share Repurchase and Market Value Impact

Gamma Corp. has 60.13 million shares outstanding, and its stock is currently trading at $26.28 per share. The company plans to repurchase $104.72 million worth of its own shares. Calculate: (a) the number of shares repurchased; and (b) the number of shares outstanding after the repurchase.

a. Shares repurchased (millions):

✅ Shares repurchased = Repurchase amount / Stock price = 104.72 / 26.28 = 3.98M.

b. Shares outstanding after repurchase (millions):

✅ Shares outstanding after repurchase = Shares outstanding - Shares repurchased = 60.13 - 3.98 = 56.15M.