Question
EJH Company has a market capitalization of $1.2 billion and 35 million shares outstanding. It plans to distribute $110 million through an open market repurchase.
EJH Company has a market capitalization of
$1.2
billion and
35
million shares outstanding. It plans to distribute
$110
million through an open market repurchase. Assuming perfect capital markets:
a. What will the price per share of EJH be right before the repurchase?
b. How many shares will be repurchased?
c. What will the price per share of EJH be right after the repurchase?
Question content area bottom
Part 1
a. What will the price per share of EJH be right before the repurchase?
The price per share of EJH right before the repurchase is
$enter your response here.
(Round to the nearest cent.)
Part 2
b. How many shares will be repurchased?
The number of shares to be repurchased is
enter your response here
million.(Round to two decimal places.)
Part 3
c. What will the price per share of EJH be right after the repurchase?
The price per share of EJH right after the repurchase will be
$enter your response here.
(Round to the nearest cent.)
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