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ABC Stores has 20,000 shares outstanding at a market price per share of $40. The net income is $30,000. What is the current market value
ABC Stores has 20,000 shares outstanding at a market price per share of $40. The net income is $30,000.
- What is the current market value of equity, earnings per share (EPS) and price-earnings (PE) ratio?
- The company has decided to repurchase $100,000 worth of shares. What are the number of shares repurchased, new shares outstanding, new price per share, new market value of equity, new EPS, and new PE ratio?
- Suppose instead that the firm pays a cash dividend with a total value of $100,000. What are the dividends per share (DPS), new shares outstanding, new price per share, new market value of equity, new EPS, and new PE ratio?
Please show work i cant do it without work.
Stock Repurchases versus Cash Dividends ABC Stores has 20,000 shares outstanding at a market price per share of $40. The net income is $30,000. 1. What is the current market value of equity, earnings per share (EPS) and price-earnings (PE) ratio? 2. The company has decided to repurchase $100,000 worth of shares. What are the number of shares repurchased, new shares outstanding, new price per share, new market value of equity, new EPS, and new PE ratio? 3. Suppose instead that the firm pays a cash dividend with a total value of $100,000. What are the dividends per share (DPS), new shares outstanding, new price per share, new market value of equity, new EPS, and new PE ratio? Also upload your excel files showing your workStep by Step Solution
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