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A company has a market value equal to its book value. Currently, the company has excess cash of $370,000 and other assets of $4,730,000. Equity
A company has a market value equal to its book value. Currently, the company has excess cash of $370,000 and other assets of $4,730,000. Equity is worth $2,680,000. The firm has 52,000 shares of stock outstanding and net income of $460,000. What will the new earnings per share be if the company uses its excess cash to complete a stock repurchase?
$7.70 | ||
$8.34 | ||
$8.98 | ||
$9.62 | ||
$10.26 |
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