Question
Petroxy Manufacturing Inc. expects to earn $4,200,000 this year. The company currently has 830,000 shares outstanding, and the shares have a per-share market price of
Petroxy Manufacturing Inc. expects to earn $4,200,000 this year. The company currently has 830,000 shares outstanding, and the shares have a per-share market price of $21. Assuming that Petroxy's price-to-earnings (P/E) ratio remains constant and its earnings are unaffected by a share repurchase transaction, then the company's expected market price per shareif it repurchases 75,000 shares at the current market priceshould be?
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Contemporary Engineering Economics
Authors: Chan S. Park
5th edition
136118488, 978-8120342095, 8120342097, 978-0136118480
