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Sixty-second Avenue Inc. expects to earn $4,800,000 this year. The company currently has 720,000 shares outstanding, and the shares have a per- share market price
Sixty-second Avenue Inc. expects to earn $4,800,000 this year. The company currently has 720,000 shares outstanding, and the shares have a per- share market price of $18. Assuming that Sixty-second Avenue'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 share-if it repurchases 75,000 shares at the current market price- should be Which of these factors are considered an advantage of a stock repurchase? Check all that apply. O A repurchase can remove a large block of stock that is overhanging the market and keeping the per-share price depressed. The price of the firm's stock might benefit more from cash dividends than from a repurchase. When a firm distributes cash by repurchasing stock, stockholders have the option to either sell or not sell stock
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