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Harris Shipping Company has excess cash of $300,000 and 200,000total shares outstanding. The firm pays no dividends and its netincome for the year just ended is $100,000. The market valuebalance sheet at the end of the year is shown below. Assume thatthe entire amount of excess cash will be utilized for sharerepurchase at the current market price. Calculate theprice-earnings ratio after the repurchase.Market Value Balance Sheet(before paying out excess cash)Excess Cash$300,000Debt$0Other Assets$900,000Equity$1,200,000Total$1,200,000Total$1,200,000