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Q17 The Shabaaz Co. currently has 4,000,000 shares outstanding that are selling for $24.25. The the firm's net income is $7,000,000, so the Earnings per
Q17
The Shabaaz Co. currently has 4,000,000 shares outstanding that are selling for $24.25. The the firm's net income is $7,000,000, so the Earnings per Shares (EPS) is $1.75. The firm plans to use $5,000,000 in excess cash to repurchase shares at the current market price. If they execute this repurchase, what will be the firm's Earnings per Shares (EPS) after?
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To calculate the new Earnings per Share EPS after the share repurchase we can use the following ste...
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
15th edition
77861612, 1259194078, 978-0077861612, 978-1259194078
