The effects of a stock repurchase on a firms’ EPS (earnings per share) and PE (Price earnings ratio). Introduction: Stock repurchases is also called as buy back of shares, where the company can purchase their outstanding shares.

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Chapter 14.3, Problem 14.3BCQ

Summary Introduction

To discuss: The effects of a stock repurchase on a firms’ EPS (earnings per share) and PE (Price earnings ratio).

Introduction:

Stock repurchases is also called as buy back of shares, where the company can purchase their outstanding shares.

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Congratulations! Your portfolio returned 16.7% last year, 2.5% better than the market return of 14.2%. Your portfolio had a standard deviation of earnings equal to 18%, and the risk-free rate is equal to 4.4%. Calculate Sharpe's measure for your portfolio. If the market's Sharpe's measure is 0.29, did you do better or worse than the market from a risk/return perspective? The Sharpe's measure of your portfolio is (Round to two decimal places.)

On January 1, 2020, Simon Love's portfolio of 15 common stocks had a market value of $258,000. At the end of May 2020, Simon sold one of the stocks, which had a beginning-of-year value of $26,900, for $31,400. He did not reinvest those or any other funds in the portfolio during the year. He received total dividends from stocks in his portfolio of $11,900 during the year. On December 31, 2020, Simon's portfolio had a market value of $246,000. Find the HPR on Simon's portfolio during the year ended December 31, 2020. (Measure the amount of withdrawn funds at their beginning-of-year value.) Simon's portfolio HPR during the year ended December 31, 2020, is %. (Round to two decimal places.)

Chee Chew's portfolio has a beta of 1.27 and earned a return of 13.6% during the year just ended. The risk-free rate is currently 4.6%. The return on the market portfolio during the year just ended was 10.5%. a. Calculate Jensen's measure (Jensen's alpha) for Chee's portfolio for the year just ended. b. Compare the performance of Chee's portfolio found in part a to that of Carri Uhl's portfolio, which has a Jensen's measure of -0.25. Which portfolio performed better? Explain. c. Use your findings in part a to discuss the performance of Chee's portfolio during the period just ended.

Answer 2

Question

Chapter 14.3, Problem 14.3BCQ

Summary Introduction

To discuss: The effects of a stock repurchase on a firms’ EPS (earnings per share) and PE (Price earnings ratio).

Introduction:

Stock repurchases is also called as buy back of shares, where the company can purchase their outstanding shares.

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Answer 3

Question

Chapter 14.3, Problem 14.3BCQ

Summary Introduction

To discuss: The effects of a stock repurchase on a firms’ EPS (earnings per share) and PE (Price earnings ratio).

Introduction:

Stock repurchases is also called as buy back of shares, where the company can purchase their outstanding shares.

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Answer 4

Question

Chapter 14.3, Problem 14.3BCQ

Summary Introduction

To discuss: The effects of a stock repurchase on a firms’ EPS (earnings per share) and PE (Price earnings ratio).

Introduction:

Stock repurchases is also called as buy back of shares, where the company can purchase their outstanding shares.

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Answer 5

Chapter 14.3, Problem 14.3BCQ

Summary Introduction

To discuss: The effects of a stock repurchase on a firms’ EPS (earnings per share) and PE (Price earnings ratio).

Introduction:

Stock repurchases is also called as buy back of shares, where the company can purchase their outstanding shares.

Answer 6

Chapter 14.3, Problem 14.3BCQ

Summary Introduction

To discuss: The effects of a stock repurchase on a firms’ EPS (earnings per share) and PE (Price earnings ratio).

Introduction:

Stock repurchases is also called as buy back of shares, where the company can purchase their outstanding shares.

Answer 7

Chapter 14.3, Problem 14.3BCQ

Summary Introduction

To discuss: The effects of a stock repurchase on a firms’ EPS (earnings per share) and PE (Price earnings ratio).

Introduction:

Stock repurchases is also called as buy back of shares, where the company can purchase their outstanding shares.

Answer 8

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Answer 11

Ch. 14.1 - Prob. 14.1ACQ Ch. 14.1 - Prob. 14.1BCQ Ch. 14.1 - Prob. 14.1CCQ Ch. 14.2 - Prob. 14.2ACQ Ch. 14.2 - Prob. 14.2BCQ Ch. 14.2 - Prob. 14.2CCQ Ch. 14.3 - Prob. 14.3ACQ Ch. 14.3 - Prob. 14.3BCQ Ch. 14.5 - Prob. 14.5ACQ Ch. 14.5 - Prob. 14.5BCQ

The effects of a stock repurchase on a firms’ EPS (earnings per share) and PE (Price earnings ratio). Introduction: Stock repurchases is also called as buy back of shares, where the company can purchase their outstanding shares.

Solution Summary: The author explains the effects of a stock repurchase on earnings per share and price earnings ratio.

To discuss: The effects of a stock repurchase on a firms’ EPS (earnings per share) and PE (Price earnings ratio).

Introduction:

Stock repurchases is also called as buy back of shares, where the company can purchase their outstanding shares.

Want to see the full answer?

Chapter 14 Solutions

The effects of a stock repurchase on a firms’ EPS (earnings per share) and PE (Price earnings ratio). Introduction: Stock repurchases is also called as buy back of shares, where the company can purchase their outstanding shares.

Solution Summary: The author explains the effects of a stock repurchase on earnings per share and price earnings ratio.

To discuss: The effects of a stock repurchase on a firms’ EPS (earnings per share) and PE (Price earnings ratio). Introduction: Stock repurchases is also called as buy back of shares, where the company can purchase their outstanding shares.

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Chapter 14 Solutions

To discuss: The effects of a stock repurchase on a firms’ EPS (earnings per share) and PE (Price earnings ratio).

Introduction:

Stock repurchases is also called as buy back of shares, where the company can purchase their outstanding shares.