Question
***Please answer everything*** Botanical Gardens Nursery has 6,400 shares of stock outstanding at a market price of $25 a share. The earnings per share are
***Please answer everything***
Botanical Gardens Nursery has 6,400 shares of stock outstanding at a market price of $25 a share. The earnings per share are $1.66. The firm has total assets of $311,000. Today, the firm is paying an annual cash dividend of $1.02 a share. Ignore taxes.
How many shares will be outstanding after the dividend is paid? shares
What should the market price be after the dividend is paid? $
What will the earnings per share be after the dividend is paid?
What will the price-earnings ratio be after the dividend is paid?
Blasco's has a market value equal to its book value. Currently, the firm has excess cash of $1,362, other assets of $11,668, and equity of $8,085. The firm has 1,470 shares of stock outstanding and net income of $874. Blasco's has decided to spend 1/3 of its excess cash on a share repurchase program. How many shares of stock will be outstanding after the stock repurchase is completed?
shares outstanding
Question 2
Rochester, Inc. has 8,100 shares of stock outstanding at a market price of $55 each and earnings per share of $2.50. The firm has decided to repurchase $55,000 worth of stock.
What will the EPS be after the repurchase, all else constant?
EPS:
What will the PE ratio be after the repurchase, all else held constant?
PE ratio:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started