Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ABC Ltd has 2,000,000 ordinary shares outstanding that are currently trading at a market price of $9.95 per share. It has earnings available to ordinary

ABC Ltd has 2,000,000 ordinary shares outstanding that are currently trading at a market price of $9.95 per share. It has earnings available to ordinary shareholders of $2555209. The firm is planning to use $1582749 of its earnings to repurchase some of its shares in the market at a price of $10.00 per share. By how much will earnings per share increase as a result of the repurchase? Please round your answer to the nearest 1/10th of one cent but exclude the $ sign when typing your answer (e.g. $0.0438 should be answered as 0.044)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mutual Fund Industry Handbook

Authors: Gremillion

1st Edition

0471736244, 978-0471736240

More Books

Students also viewed these Finance questions