P13-17 (similar to) Question Help Stock repurchase The following financial data on the Bond Recording Company are available: E. The firm is currently considering whether it should use $650,000 of its earnings to help pay cash dividends of $1.44 per share or to repurchase stock at $37 per share. a. Approximately how many shares of stock can the firm repurchase at the $37-per-share price, using the funds that would have gone to pay the cash dividend? b. Calculate the EPS after the repurchase. c. If the stock still sells at 18 times earnings, what will the market price be after the repurchase? Earnings available for common stockholders Number of shares of common stock outstanding Earnings per share ($900,000 = 450,000) Market price per share Pricelearnings (P/E) ratio ($36 - $2) $900,000 450,000 $2 $36 18