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Homework: Homework 6 Save Score: 0 of 1 pt 8 of 8 (0 complete) HW Score: 0%, 0 of 8 p P14-17 (similar to) Stock repurchase the following financial data on the Bond Recording Company are available. The firm is currently considering whether it should use $600,000 of its earnings to help pay cash dividends of $1.50 per share or to repurchase stock at $32 per share. Approximately how many shares of stock can the firm repurchase at the $32.per share prion, using the funds that would have gone to pay the cash dividend? b. Calculate the EPS after the repurchase c. If the stock still solls at 15 times earnings, what will the market price be after the repurchase? d. Compare the pre- and post-repurchase earnings per share. e. Compare and contrast the stockholders' positions under the dividend and repurchase alternatives. What are the tax implications under each alternative? a. The number of shares Bond can repurchase is I. (Round down to the nearest whole number) Enter your answer in the answer box and then click Check Answer parts remaining Clear All Check AS a O Type here to search Recording Company are available: The firm is currently considering whether it show per share. purchase at the $32-per-share price, using the funds that would have gone to pay the cash market price be after the repurchase? are. the dividend and repurchase alternatives. What are the tax implications under each alterna ound down to the nearest whole number.) Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Earnings available for common stockholders $800,000 Number of shares of common stock outstanding 400,000 Earnings per share ($800,000 + 400,000) $2 Market price per share $30 Pricelearnings (P/E) ratio ($30 +$2) 15 Print Done k Check Answer. Clear All 24 a

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