1) Rochester, Inc. has 7,700 shares of stock outstanding at a market price of $61each and earnings per share of $2.10. The firm has decided to repurchase $61,000worth of stock.

What will the EPS be after the repurchase, all else constant? EPS: ______

2) Blasco's has a market value equal to its book value. Currently, the firm has excess cash of $1,342, other assets of $11,672, and equity of $6,985. The firm has1,270 shares of stock outstanding and net income of $850. Blasco's has decided to spend 1/4 of its excess cash on a share repurchase program. How many shares of stock will be outstanding after the stock repurchase is completed?

______shares outstanding

What will the PE ratio be after the repurchase, all else held constant? (Use the full, unrounded value for all inputs)

PE ratio: _____

3)Botanical Gardens Nursery has 6,600 shares of stock outstanding at a market price of $23 a share. The earnings per share are $1.60. The firm has total assets of $313,000. Today, the firm is paying an annual cash dividend of $0.92 a share. Ignore taxes.

How many shares will be outstanding after the dividend is paid?______shares

What should the market price be after the dividend is paid?$_____

What will the earnings per share be after the dividend is paid?______

What will the price-earnings ratio be after the dividend is paid?______

4)Flemington Farms is evaluating an extra dividend versus a share repurchase. In either case, $15,300would be spent. Current earnings are $2.60 per share, and the stock currently sells for $85 per share. There are 3,000 shares outstanding. Ignore taxes and other imperfections.

What is the current PE ratio? (without a dividend or repurchase)______

If the company pursues the repurchase:

What is the new number of shares outstanding?______

What is the new EPS?_____

What is the new PE ratio? (Use the full, unrounded value for all inputs)_____

If the company chooses the extra dividend:

What is the new price? (ignore taxes) $_____

What is the new EPS?____

What is the new PE ratio?_____

5) Alfonzo's Italian House has25,300 shares of stock outstanding with a par value of $1 per share and a market price of $22 a share. The firm just announced a 3-for-2 stock split.

What is the equity value of the company before the split?$_____

What will the market price per share be after the split?$_____

How many shares of stock will be outstanding after the split?______shares

What is the equity value of the company after the split?$______

6)The Olive Vase has 59,000shares of stock outstanding with a par value of $1 per share and a market value of $14 a share. The company just announced a 1-for-4 reverse stock split. Currently, you own 350 shares of this stock.

What is the new price per share after the reverse stock split? $_____

How many shares of this stock will you own after the reverse stock split?_____shares

What is the total value of your shares after the reverse stock split?$_____