Question
EJH Company has a market capitalization of $2.1 billion and 15 million shares outstanding. It plans to distribute $120 million through an open market repurchase.
EJH Company has a market capitalization of $2.1 billion and 15 million shares outstanding. It plans to distribute $120 million through an open market repurchase. Assuming perfect capitalmarkets:
a. What will the price per share of EJH be right before therepurchase?
b. How many shares will berepurchased?
c. What will the price per share of EJH be right after therepurchase?
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Corporate Finance The Core
Authors: Jonathan Berk, Peter DeMarzo
4th Global Edition
1292158336, 9781292158334
