Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(Stock repurchases and earnings per share) CareMore, Inc. provides in-home medical assistance to the elderly and earned net income of $4.7 million that it plans

(Stock repurchases and earnings per share)

CareMore, Inc. provides in-home medical assistance to the elderly and earned net income of $4.7 million that it plans to use to repurchase shares of the firm's common stock, which is currently selling for $46 a share. CareMore has 15 million shares of stock outstanding.

a. What fraction of the firm's shares can the firm repurchase for $4.7 million?

b. If the share repurchase has no impact on the firm's net income, what will be its earnings per share after the repurchase?

a. What fraction of the firm's shares can the firm repurchase for $4.7 million?

% (Round to two decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Finance Principles And Practice

Authors: Denzil Watson, Tony Head

1st Edition

0273630083, 978-0273630081

More Books

Students also viewed these Finance questions