Question
Petrofac has a market value equal to its book value. Currently, the firm has excess cash of $21,000 and other assets of $102,000. Equity is
Petrofac has a market value equal to its book value. Currently, the firm has excess cash of $21,000 and other assets of $102,000. Equity is worth $84,000. The firm has 1,900 shares of stock outstanding and net income of $9,200. What will the new earnings per share be if the firm uses its excess cash to complete a stock repurchase?
| $5.27 | ||
| $6.25 | ||
| $5.58 | ||
| $6.46 | ||
| $6.63 |
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Stocks For The Long Run
Authors: Jeremy Siegel
6th Edition
1264269803, 978-1264269808
