(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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