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The Carlton Corporation has $4 million in earnings after taxes and 2 million shares outstanding. The stock trades at a P/E of 25. The firm
The Carlton Corporation has $4 million in earnings after taxes and 2 million shares outstanding. The stock trades at a P/E of 25. The firm has $2 million in excess cash. a. Compute the current price of the stock. Note: Do not round intermediate calculations and round your answer to 2 decimal places. b. If the $2 million is used to pay dividends, how much will dividends per share be? Note: Do not round intermediate calculations and round your answer to 2 decimal places. c. If the $2 million is used to repurchase shares in the market at a price of $52 per share, how many shares will be acquired
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