Question
1. Fill in the table below for a share repurchase. Assume the company buys back 100,000 shares at $20 per share. Before Buyback After Buyback
1. Fill in the table below for a share repurchase. Assume the company buys back 100,000 shares at $20 per share.
|
| Before Buyback | After Buyback |
| Cash | $10,000,000 |
|
| Total Assets | $100,000,000 |
|
| Common Stock - $10 Par X 1,000,000 shares | $10,000,000 |
|
| Additional paid in capital - $5 X 1,000,000 shares | $5,000,000 |
|
| Retained Earnings | $5,000,000 |
|
| Treasury Stock at Cost
| $0 |
|
| Total Equity | $20,000,000 |
|
| Total Liabilities | $80,000,000 |
|
| Earnings aka Net Income | $2,000,000 |
|
| # Shares Outstanding Treasury stock is not outstanding | 1,000,000 |
|
| EPS = profit/# shares
|
|
|
| ROA = profit/assets
|
|
|
| ROE = profit / equity
|
|
|
| Stock Price = EPS X P/E
|
|
|
| P/E ratio = stock price/EPS
| 10 | 10 |
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
8th Edition
007322359X, 9780073223599
