Module 10: Numeric Questions

For students

Last updated: 08/01/2026 16:05

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.

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.

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