a)
To determine: Current earnings per share (EPS) and price earning ratio (P/E ratio).
Introduction:
Earnings per share refer to the earnings per share of outstanding shares of company’s common stock.
Price earnings ratio is determined by dividing the market price by the earnings per share.
b)
To determine: Shares repurchased
Introduction:
Earnings per share refer to the earnings per share of outstanding shares of company’s common stock.
Price earnings ratio is determined by dividing the market price by the earnings per share.
c)
To determine: The EPS after shares repurchased
Introduction:
Earnings per share refer to the earnings per share of outstanding shares of company’s common stock.
Price earnings ratio is determined by dividing the market price by the earnings per share
d)
To determine: The market price after the stock repurchase
Introduction:
Earnings per share refer to the earnings per share of outstanding shares of company’s common stock.
Price earnings ratio is determined by dividing the market price by the earnings per share
e)
To discuss: EPS before and after the proposed repurchase
Introduction:
Earnings per share refer to the earnings per share of outstanding shares of company’s common stock.
Price earnings ratio is determined by dividing the market price by the earnings per share
d)
To discuss: The stock holders’ position under repurchase and dividend.
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Principles of Managerial Finance (14th Edition) (Pearson Series in Finance)
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