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Green Thumb Nursery has 45,000 shares outstanding at a market price of $63.41 per share. The...

Green Thumb Nursery has 45,000 shares outstanding at a market price of $63.41 per share. The earnings per share are $3.41. The firm has total assets of $346,000 and total liabilities of $199,000. Today, the firm announced a share repurchase for $101,000 of its stock. What is the earnings per share after the repurchase? Multiple Choice $3.54 $3.66 $3.41 $3.31 $3.60

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Answer #1
Number of shares outstanding after repurchase is = Present outstanding - shares repurchased
Number of shares outstanding after repurchase is = (45000-(101000/63.41))
Number of shares outstanding after repurchase is = 43,407
Earnings per share after repurchase is = (Present earnings per share*Present outstanding shares)/Shares outstanding after repurchase
Earnings per share after repurchase is = (45000*3.41)/43407
Earnings per share after repurchase is = $ 3.53514
Earnings per share after repurchase is = $ 3.54/.
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