Question
Dungeoness Corporation has excess cash of $1,700 that it would like to distribute to shareholders through a share repurchase. Current earnings are $0.8 per share,
Dungeoness Corporation has excess cash of $1,700 that it would like to distribute to shareholders through a share repurchase. Current earnings are $0.8 per share, and the stock currently sells for $29 per share. There are 200 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. Please find all 4
Price per share = ?
Number Number of shares repurchased =?
Number Earnings per Share =?
Number Price earnings (P/E) ratio =?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Global Finance And The Macroeconomy
Authors: A. Makin
1st Edition
0333736982, 978-0333736982
