Question
A company has a market value equal to its book value. The company currently has excess cash of $300 and other assets of $6,200. The
A company has a market value equal to its book value. The company currently has excess cash of $300 and other assets of $6,200. The equity is worth $5,000. The company has 500 shares outstanding and net income of $720. What will the new earnings per share be if the company uses its excess cash to complete a share buyback?
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If the company uses its excess cash of 300 to buy back ...
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Financial Institutions Management A Risk Management Approach
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
8th edition
978-0078034800, 78034809, 978-0071051590
