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.)
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? a) $1.797 b) $1.832 c) $1.848 d) $1.620 e) $1.883
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? a) $1.797 b) $1.832 c) $1.848 d) $1.620 e) $1.883 On Jan. 1, XYZ started a new business. The shareholders made an initial cash investment of $1,000,000. During the year, the company provided $10,500,000 of services to customers. On December 31, XYZ had a balance in Accounts Receivable of $1,200,000. Also, during the year, the company incurred expenses of $8,800,000 and ended the year with a balance in Accounts Payable of $920,000. What is XYZ's income before income taxes for the year, under the Cash and Accrual basis? A. Cash Basis: $9,300,000 Accrual Basis: $10,500,000 B. Cash Basis: $1,700,000 Accrual Basis: $1,420,000 C. Cash Basis:…
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.
Bob’s Standard Station has 15,000 shares of stock outstanding at a market price of $15 a share. The current earnings per share are $1.26. The firm has total assets of $312,000 and total liabilities of $97,500. Next week, the firm will be repurchasing $37,500 worth of stock. Ignore taxes. What will be the earnings per share after the stock repurchase?
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?
Sun Instruments expects to issue new stock at $36 a share with estimated flotation costs of 9 percent of the market price. The company currently pays a $1.70 cash dividend and has a 3 percent growth rate. What are the costs of retained earnings and new common stock? Round your answers to two decimal places. Costs of retained earnings: % Cost of new common stock: %
At year end, Sampson Company's balance sheet showed total assets of $80 million, total liabilities of $50 million, and 1,000,000 shares of common stock outstanding. Next year, Malta is projecting that it will have net income of $2.9 million. If the average P/E multiple in Malta's industry is 16, (and this is an average stock) what should be the price of Sampson's stock? O $50.43 O $46.40 O $44.57 O $41.60
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. %
Use the comission schedule from Company B shown in the table to find the annual rate of interest earned on the investment. (Note: commisions are rounded to the nearest cent.) An investor purchases 100 shares at $36.08 a share, holds the stock for 304 days, and then sells the stock for $49.31 a share. Assume a 360-day year. The annual rate of interest is %? (Round to three decimals)