Question
Dungeoness Corporation has excess cash of $1,600 that it would like to distribute to shareholders through a share repurchase. Current earnings are $1 per share,
Dungeoness Corporation has excess cash of $1,600 that it would like to distribute to shareholders through a share repurchase. Current earnings are $1 per share, and the stock currently sells for $38 per share. There are 280 shares outstanding. Ignore taxes and other imperfections.
If Dungeoness Corp. goes with the share repurchase, what will the price per share be? How many shares will they buy in the repurchase? What are earnings per share (EPS) and the price earnings (P/E) ratio? Enter your answers rounded to 2 DECIMAL PLACES.
Price per share =
Number of shares repurchased =
Earnings per Share =
Price earnings (P/E) ratio =
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Elementary Statistics
Authors: Robert R. Johnson, Patricia J. Kuby
11th Edition
9780538733502
