Question

A company is planning to spend $15,870 for a share repurchase program. The company's current EPS...

A company is planning to spend $15,870 for a share repurchase program. The company's current EPS is $1.31 per share. The current share price is $52.90 per share, and there are 2,644 common shares currently outstanding. Ignoring taxes, what is the company's P/E ratio immediately after the share repurchase has been completed?

Question 5 options:

33.1

34.0

34.9

35.8

36.7

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The Dillon Company is planning a $1 million share repurchase. Its current stock price is $80...
The Dillon Company is planning a $1 million share repurchase. Its current stock price is $80 per share, and there are 800,000 shares outstanding prior to the repurchase. Earnings per share without the repurchase would be $4 per share. 1. Assuming the P/E ratio doesn’t change, what would be the share price following the repurchase if the repurchase is funded using excess cash? a. $80.99 b. $81.27 c. $82.04 d. $82.19 2. Instead of using excess cash, now assume the...
Campbell Corporation is evaluating an extra dividend versus a share repurchase. In either case, $19,000 would...
Campbell Corporation is evaluating an extra dividend versus a share repurchase. In either case, $19,000 would be spent. Current earnings are $1.60 per share, and the stock currently sells for $50 per share. There are 2,500 shares outstanding. Ignore taxes and other imperfections. a. Evaluate the two alternatives in terms of the effect on the price per share of the stock and shareholder wealth per share. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g.,...
Awake Corporation is evaluating an extra dividend versus a share repurchase. In either case, $14,000 would...
Awake Corporation is evaluating an extra dividend versus a share repurchase. In either case, $14,000 would be spent. Current earnings are $1.60 per share, and the stock currently sells for $56 per share. There are 3,500 shares outstanding. Ignore taxes and other imperfections. a. Evaluate the two alternatives in terms of the effect on the price per share of the stock and shareholder wealth per share. Extra dividends and repurchase (Do not round intermediate calculations and round your answers to...
Awake Corporation is evaluating an extra dividend versus a share repurchase. In either case, $14,000 would...
Awake Corporation is evaluating an extra dividend versus a share repurchase. In either case, $14,000 would be spent. Current earnings are $2.00 per share, and the stock currently sells for $50 per share. There are 2,000 shares outstanding. Ignore taxes and other imperfections. a. Evaluate the two alternatives in terms of the effect on the price per share of the stock and shareholder wealth per share. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g.,...
Stock repurchase  The following financial data on the Bond Recording Company are​ available: Earnings available for...
Stock repurchase  The following financial data on the Bond Recording Company are​ available: Earnings available for common stockholders $900,000 Number of shares of common stock outstanding 450000 Earnings per share ($900,000/450,000) $2 Market price per share $24 Price/earnings (P/E) ratio ($24/$2) 12 The firm is currently considering whether it should use $450,000 of its earnings to help pay cash dividends of $1.00 per share or to repurchase stock at $25 per share. a. Approximately how many shares of stock can...
Chapter 12 Financial Planning Exercise 7 Calculating key stock performance metrics The Morton Company recently reported...
Chapter 12 Financial Planning Exercise 7 Calculating key stock performance metrics The Morton Company recently reported net profits after taxes of $14.7 million. It has 5 million shares of common stock outstanding and pays preferred dividends of $1 million a year. The company's stock currently trades at $67 per share. Compute the stock's earnings per share (EPS). Round the answer to two decimal places. $   per share What's the stock's P/E ratio? Round the answer to two decimal places. $   times Determine...
Companies with excess cash often employ share repurchase plans in place of or along with cash...
Companies with excess cash often employ share repurchase plans in place of or along with cash dividends. Share repurchase plans can help investors liquidate their holdings by selling their stock to the issuing company and earning from capital gains. Consider the case of Gadgetron Inc.: Gadgetron Inc. expects to earn $4,800,000 this year. It currently has 790,000 shares outstanding. Each share has a market price of $20 per share. Assuming that the company's price-to-earnings (P/E) ratio remains constant and that...
Companies with excess cash often employ share repurchase plans in place of or along with cash...
Companies with excess cash often employ share repurchase plans in place of or along with cash dividends. Share repurchase plans can help investors liquidate their holdings by selling their stock to the issuing company and earning from capital gains. Consider the case of Dernham Burnham Inc.: Dernham Burnham Inc. expects to earn $4,200,000 this year. It currently has 830,000 shares outstanding. Each share has a market price of $20 per share. Assuming that the company's price-to-earnings (P/E) ratio remains constant...
Earnings per share (EPS) over the last 12 months=$2.50 Earnings per share (EPS) over the next...
Earnings per share (EPS) over the last 12 months=$2.50 Earnings per share (EPS) over the next 12 months=$4.00 Current stock price=$45 Number of common shares outstanding=20,000,000 Restricted stock = 1,000,000 Annual dividend per share=$1.50 Expected annual growth rate in earnings over the next 5 years=5% Shares short=1,000,000 Average trading volume=10,000,000 shares 13. What is the market capitalization for YTB? (a) $600m (b) $700m (c) $800m (d) $900m 14. Based on your answer in question 13, YTB is a (a) mid-cap...
Growth​ Company's current share price is $ 19.95 and it is expected to pay a $...
Growth​ Company's current share price is $ 19.95 and it is expected to pay a $ 0.90 dividend per share next year. After​ that, the​ firm's dividends are expected to grow at a rate of 3.6 % per year. a. What is an estimate of Growth​ Company's cost of​ equity? b. Growth Company also has preferred stock outstanding that pays a $ 1.95 per share fixed dividend. If this stock is currently priced at $ 27.90​, what is Growth​ Company's...