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The Carlton Corporation has S6 million in earnings after taxes and 3 million shares outstanding. The stock trades at a PE of 25. The firm
The Carlton Corporation has S6 million in earnings after taxes and 3 million shares outstanding. The stock trades at a PE of 25. The firm has $5 million in excess cash. a. Compute the current price of the stock. (Do not round intermediate calculations and round your answer to 2 decimal places.) Current price b. If the $5 million is used to pay dividends, how much will dividends per share be? (Do not round intermediate calculations and round your answer to 2 decimal places.) Dividends per share c. If the $5 million is used to repurchase shares in the market at a price of S55 per share, how many shares will be acquired? (Do not round intermediate calculations and round your answer to the nearest whole share.) Number of shares acquired shares
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