Stock repurchase The following data on the Bond Record Company are available:. The firm is currently considering whether it should use $550,000 (not included in the $$700,000 earnings listed in the financial data) of its earnings to help pay cash dividends of $1.57 per share or to repurchase stock at $38 per share. a. Approximately how many shares of stock can the firm repurchase at the $38-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. Earnings available for common stockholders Number of shares of common stock outstanding Earnings per share ($700,000 350,000) Market price per share Price/earnings (P/E) ratio ($38+$2) $700,000 350,000 $2 $38 19