Stock repurchase The following data on the Bond Record Company are available: The firm is currently considering whether it should use $500,000 (not included in the $$600,000 earnings listed in the financial data) of its earnings to help pay cash dividends of $1.67 per share or to repurchase stock at $30 per share. a. Approximately how many shares of stock can the firm repurchase at the $30-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.) Earnings available for common stockholders Number of shares of common stock outstanding Earnings per share ($600,000 300,000) Market price per share Price/earnings (P/E) ratio ($30+ $2) $600,000 300,000 $2 $30 15