Question
EJH Company has a market capitalization of $ 2.6 billion and 40 million shares outstanding. It plans to distribute $ 100 million through an open
EJH Company has a market capitalization of $2.6 billion and 40 million shares outstanding. It plans to distribute $100 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?
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Accounting Information Systems
Authors: Vernon Richardson, Chengyee Chang, Rod Smith
2nd edition
