Question
EJH Company has a market capitalization of $2.4 billion and 45 million shares outstanding. It plans to distribute $ 105 million through an open market
EJH Company has a market capitalization of $2.4 billion and 45 million shares outstanding. It plans to distribute $ 105 million through an open market repurchase. Assuming perfect capitalmarkets:
a. What will be the price per share of EJH right before therepurchase?
b. How many shares will berepurchased?
c. What will be the price per share of EJH right after therepurchase?
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Corporate Finance The Core
Authors: Jonathan Berk, Peter DeMarzo
4th Global Edition
1292158336, 9781292158334
