(b)Nik Syak Dental Berhad has net income of RM3,000,000 and it has 2,000,000outstanding common shares. The company's share currently trades at RM45 ashare. Nik Syak is considering a plan where it will use available cash torepurchase 30 percent of its shares in the open market. The repurchase isexpected to have no effect on either net income or the company's P/E ratio.Calculate the firm's new share price.

Answered: Image /qna-images/answer/a215f26d-cd2c-4ce0-b207-78706dd60bef.jpg

Answered: Nik Syak Dental Berhad has net income…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Vijay
Reynolds Construction's current value of operations is $750 million based on the free cash flow valuation model. Its balance sheet shows $50 million of short-term investments that are unrelated to operations, and $300 million of total debt. What is the best estimate for the firm's value of equity, in millions?.

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