A firm has 50,000 shares of stock outstanding, net income of $50,000, and a PE ratio...

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A firm has 50,000 shares of stock outstanding, net income of $50,000, and a PE ratio...

A firm has 50,000 shares of stock outstanding, net income of $50,000, and a PE ratio of 10. What will the firm’s PE ratio be if the firm repurchases 25,000 shares? Assume all else remains constant. 12.0 13.0 5.0 7.5

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Answer 1

Answer #1

Given Number shores outstanding 25000 o share niet income ofshaves - $ 500ed market price per Share : PE ratior EPS : . 10 x$

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Answer 2

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