Question
A company has 1 million shares outstanding and earnings are $2 million. The company decides to use $10 million in idle cash to repurchase shares
A company has 1 million shares outstanding and earnings are $2 million. The company decides to use
$10 million in idle cash to repurchase shares in the open market. The company's shares are trading at
$50 per share. What will be the company's earnings per share assuming that the company uses the
entire $10 million of idle cash to repurchase shares at the market price?
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Fundamentals of Futures and Options Markets
Authors: John C. Hull
8th edition
978-1292155036, 1292155035, 132993341, 978-0132993340
