A company has a market value equal to its book value. Currently, the company has...
90.2K
Verified Solution
Link Copied!
Question
Finance
A company has a market value equal to its book value. Currently, the company has excess cash of $276,000 and other assets of $4,300,000. Equity is worth $1,912,500. The firm has 45,000 shares of stock outstanding and net income of $340,000. What will the new earnings per share be if the company uses its excess cash to complete a stock repurchase? $8.83 $9.17 $7.65 $6.29 $10.18 Assume the stockholders of Nemo stock are in the 25 percent tax bracket. The closing price of the stock today was $47.00 a share. The firm pays a quarterly dividend of $1.40 per share. What is the expected opening price of the stock tomorrow if tomorrow is an ex-dividend date? $46.55 $46.35 $46.15 $45.95 $45.80
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
