A Kinston firm has a market value equal to its book value. Currently, the firm has excess cash of $800 and other assets of $4,200. Equity is worth $5,000. The firm has 200 shares of stock
Outstanding and net income of $350. What will the new earnings per share be if the firm uses all its
Excess cash to complete a stock repurchase?
A) $1.51
B) $1.75
C) $1.96
D) $2.00
E) $2.08
Correct Answer:
Verified
Q95: The Daily News maintains a debt-equity ratio
Q96: Ryan's Auto Parts has 200,000 shares of
Q97: Prezario's has 225,000 shares of stock outstanding
Q98: Jenkin's has 11,000 shares of stock outstanding
Q99: SesameSweet Inc. has 220,000 shares outstanding with
Q101: Homer, Inc. is expected to pay dividends
Q103: Homer, Inc. is expected to pay dividends
Q105: Mark bought 100 shares of XYZ stock
Q108: Bob's Auto Group has 25,000 shares of
Q118: Numberg Corporation has a stock price of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents