Imagine an all equity company with excess cash of £200,000. The firm pays no dividends, and its net income for the year just ended is £54,000. There are 100,000 shares outstanding and the total market value is £2 million. Calculate the followings: Current EPS Current P/E ratio Number of shares to be bought if company is thinking about repurchase Dividend per share if company is thinking about cash dividend
Imagine an all equity company with excess cash of £200,000. The firm pays no dividends, and its net income for the year just ended is £54,000. There are 100,000 shares outstanding and the total market value is £2 million. Calculate the followings: Current EPS Current P/E ratio Number of shares to be bought if company is thinking about repurchase Dividend per share if company is thinking about cash dividend
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Imagine an all equity company with excess cash of £200,000. The firm pays no dividends, and its net income for the year just ended is £54,000. There are 100,000 shares outstanding and the total market value is £2 million. Calculate the followings:
- Current EPS
- Current P/E ratio
- Number of shares to be bought if company is thinking about repurchase
- Dividend per share if company is thinking about cash dividend
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