Question
QUESTION 12 Sirius Company has a market value equal to its book value. Currently, the firm has excess cash of $21,000 and other assets of
QUESTION 12
Sirius Company 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 2,000 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?
| a | $5.27 | |
| b | $6.13 | |
| c | $5.38 | |
| d | $6.42 | |
| e | $6.68 |
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Local Public Finance
Authors: René Geissler, Gerhard Hammerschmid, Christian Raffer
1st Edition
3030674681, 978-3030674687
