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2. Vox Inc. has net income of $2,000,000, and it has 1,000,000 shares of common stock outstanding. The company's stock currently trades at $32 a
2. Vox Inc. has net income of $2,000,000, and it has 1,000,000 shares of common stock outstanding. The company's stock currently trades at $32 a share. Vox is considering a plan in which it will use available cash to repurchase 20% of its shares in the open market. The repurchase is expected to have no effect on net income or the company's P/E ratio. a) What will be Vox's stock price following the stock repurchase? b) What is the effect of this repurchase to Vox's EPS? c) How much should Vox spend to repurchase 20% of its outstanding shares
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