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Please solve for all! Thx!!! Stock repurchase. The following data on the Bond Record Company are available: The firm is currently considering whether it should
Please solve for all! Thx!!!
Stock repurchase. The following data on the Bond Record Company are available: The firm is currently considering whether it should use $350,000 (not included in the $700,000 eamings listed in the financial data) of its earnings to help pay cash dividends of $1.00 per share or to repurchase stock at $32 per share. A. Approximately how many shares of stock can the firm repurchase at the $32-per-share price, using the funds that would have gone to pay the cash dividend? b. Calculate the EPS after the repurchase. c. In a perfect market, what is the stock price after the repurchase and what is the P/E ratio? d. Compare the pre- and post-repurchase earnings per share. a. The number of shares Bond Record can repurchase is (Round down to the nearest whole number.) Data table (Click on the icon here 1 in order to copy the contents of the data table below into a spreadsheet.)Step by Step Solution
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