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Makeover Inc. believes that at its current stock price of $16.00 the firm is undervalued in the market. Makeover plans to repurchase 2.4 million of

Makeover Inc. believes that at its current stock price of $16.00 the firm is undervalued in the market. Makeover plans to repurchase 2.4 million of its 20 million shares outstanding. The firm's managers expect that they can repurchase the entire 2.4 million shares at the expected equilibrium price after repurchase. The firm's current earnings are $44 million. If management's assumptions hold, what is the expected market price after repurchase? a. $16.00 b. $17.26 c. $18.18 d. $20.00 e. $24.40
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Makeover Inc, believes that at its current stock price of $16.00 the firm is undervalued in the market. Makeover plans to repurchase 2.4 milion of its 20 million shares outstanding. The firm's managers expect that they can repurchase the entire 2.4 million shares at the expected equilbrium price after repurchase. The firm's current eamings are $44 million. If management's assumptions hold, what is the expected market price after repurchase? a. $16.00 b. $17.26 c. $18.18 d, $20.00 e. $24.40

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