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​(Stock repurchases and earnings per share​) ​CareMore, Inc. provides​ in-home medical assistance to the elderly and...

​(Stock repurchases and earnings per share​)

​CareMore, Inc. provides​ in-home medical assistance to the elderly and earned net income of $5.4 million that it plans to use to repurchase shares of the​ firm's common​ stock, which is currently selling for $44 a share. CareMore has 15

million shares of stock outstanding.

a. What fraction of the​ firm's shares can the firm repurchase for $5.4 ​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 $5.4 ​million?

​% ​ (Round to two decimal​ places.)

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

​$ ​(Round to four decimal​ places.)

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