Question: Green Thumb Nursery has 11,000 shares of stock outstanding at a market price of $18 per share. The current earnings per share are $1.47. The firm has total assets of $286,000 and total liabilities of $86,000. Next week, the firm will be repurchasing $36,000 worth of stock. Ignoring taxes, what will be the earnings per share after the stock repurchase? (rounded to two decimal places).

Question: Green Thumb Nursery has 11,000 shares of stock outstanding at a market price of $18 per share. The current earnings per share are $1.47. The firm has total assets of $286,000 and total liabilities of $86,000. Next week, the firm will be repurchasing $36,000 worth of stock. Ignoring taxes, what will be the earnings per share after the stock repurchase? (rounded to two decimal places).

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

See similar textbooks

Similar questions

Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)
Three Corners Markets paid an annual dividend of $1.82 a share last month. Today, the company announced that future dividends will be increasing by 2.4 percent annually. If you require a return of 11.5 percent, how much are you willing to pay to purchase one share of this stock today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Murray Motor Company wants you to calculate its cost of common stock. During the next 12 months, the company expects to pay dividends (D1) of $2.50 per share, and the current price of its common stock is $50 per share. The expected growth rate is 8 percent. Compute the cost of retained earnings (Ke). Note: Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places. If a $3 flotation cost is involved, compute the cost of new common stock (Kn). Note: Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.
The common stock of Dayton Repair sells for $41.95 a share. The stock is expected to pay $1.43 per share next year when the annual dividend is distributed. The company increases its dividends by 1.32 percent annually. What is the market rate of return on this stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
A company has net earnings of AED 10,000 for the current vear and suppose the company maintai the same earnings for the next year. The company has 1,000 total outstanding shares during the current year. The company decides to buyback 40% of its shares in the following year. Show how this decision will impact the company's earnings per share?
Murray Motor Company wants you to calculate its cost of common stock. During the next 12 months, the company expects to pay dividends (D) of $2.20 per share, and the current price of its common stock is $40 per share. The expected growth rate is 7 percent. a. Compute the cost of retained earnings (Ke). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Cost of retained earnings
Ellington Electronics wants you to calculate its cost of common stock. During the next 12 months, the company expects to pay dividends (D1) of $3.70 per share, and the current price of its common stock is $76 per share. The expected growth rate is 7 percent. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) a. Compute the cost of retained earnings (Ke). Cost of retained earnings % b. If a $7.0 flotation cost is involved, compute the cost of new common stock (Kn). Cost of new common stock %
Briel kitchenware paid an annual dividend of $1.60 per share last month. Today, the company announced that future dividends will be increasing by 3.4 percent annually. If you require. 8.8 percent rate of return, how much are you willing to pay to purchase one share of this stock today? A) 48.66 B) 47.06 C) 30.64 D) 32.24 E) 29.04
Tip Top Hats (TTH) is expected to grow at a 2 percent rate for as long as it is in business. Currently the company's common stock is selling for $36 per share. The most recent dividend paid by TTH was $2.00 per share. If new common stock is issued, TTH will incur flotation costs equal to 8.0 percent. What is the company's cost of retained earnings? Round your answer to two decimal places. % What is its cost of new common equity? Round your answer to two decimal places. %
West Tool Company is expected to pay a dividend of $1.0 in Year 1 and $1.3 in Year 2. Analysts expect the price of West Tool Company shares to be $18 two years from now. What is the intrinsic value of West Tool Company stock if the market capitalization rate of the company is 12% ? Round your answer to two decimal places and enter without the dollar sign.
The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 6% per year. Callahan's common stock currently sells for $25.75 per share; its last dividend was $2.00; and it will pay a $2.12 dividend at the end of the current year. Using the DCF approach, what is its cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places. % If the firm's beta is 1.1, the risk-free rate is 3%, and the average return on the market is 14%, what will be the firm's cost of common equity using the CAPM approach? Round your answer to two decimal places. % If the firm's bonds earn a return of 12%, based on the bond-yield-plus-risk-premium approach, what will be rs? Use the judgmental risk premium of 4% in your calculations. Round your answer to two decimal places. % If you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost of common equity? Do not round…
Belkin is expected to pay an annual dividend of $12.38 one year from now. Dividends are expected to grow by 2.2% every year and the current stock price is $181.5. The company is in the process of issuing new common stock, with flotation costs of 6% of the issue price. What is the flotation cost adjustment? Use 5 decimal places for all input numbers in your calculation.