34) Green Thumb Nursery has 7,500 shares of stock outstanding at a market price of $42 and earnings per share of $1.90. The firm has decided to repurchase $63,000 of stock. What will the PE ratio be after the repurchase?

a) 1.28 b) 1.30 c) 1.69 d) 2.02 e) 2.38

32) Which one of the following selections will increase the firm's weighted average cost of capital if a firm has a cost of equity of 13%, a cost of preferred of 11%, and an aftertax cost of debt of 6%?

a) increasing the debt equity ratio b) redeeming shares of common stock c) issuing new bonds at par d) increasing the firn's beta e) increasing the firm's tax rate

31) M&M Proposition I states that the cost of equity capital varies in response to changes in a firm's capital structure. ( True or False)

27) ADP, Inc. has decided to repurchase 600 shares of the 4,500 outstanding. What will the price per share be after the repurchase is completed?

a) 10.80 b) 18.40 c) 20 d) 20.20 e) 24.80