1) Green Thumb Nursery has 6,000 shares of stock outstanding at a market price of $20 a share. The earnings per share are $1.62. The firm has total assets of $315,000 and total liabilities of $186,000. Today, the firm is repurchasing $4,800 worth of stock. Ignore taxes. What will the earnings per share be after the stock repurchase? A $1.283, B $1.232, C $1.620, D $1.688, E $1.848

2) Florence Mills is an all-equity firm with a total market value of $250,000. The firm has 8,000 hares of stock outstanding. Management is considering issuing $50,000 of debt at an interest rate of 7% and using the proceeds on a stock repurchase. Ignore taxes. How many shares can the firm repurchase if it issues the debt securities? A 1,600 shares, B 1,618 shares, C 1,647 shares, D 1,656 shares, E 1,699 shares.

3) Noah's Landing stock is expected to produce the following returns given the various states of the economy. What is the expected return on this stock?

State of Econ Rate of Return

Recession 0.3 -0.27

Normal 0.65 0.16

Boom 0.05 0.35

A 4.05%, B 4.23%, C 4.51%, D 5.47%, E 20.26%

Please show calculations for all questions.