Jerry Springs Company has 20,000 shares of stock outstanding at a market price of $10 a...
Jerry Springs Company has 20,000 shares of stock outstanding at a market price of $10 a share. The current earnings per share are $0.55. The firm has total assets of $200,000 and total liabilities of $86,500. Next week, the firm will be repurchasing $25,000 worth of stock. Ignore taxes. What will be the earnings per share after the stock repurchase? A. $0.715 B. $0.664 C. $0.452 D. $0.629 E. $0.563
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Jerry Springs Company has 20,000 shares of stock outstanding at
a market price of $10 a...
Green Thumb Nursery has 37,000 shares outstanding at a market price of $63.25 per share. The...
Green Thumb Nursery has 37,000 shares outstanding at a market price of $63.25 per share. The earnings per share are $3.25. The firm has total assets of $330,000 and total liabilities of $191,000. Today, the firm announced a share repurchase for $85,000 of its stock. What is the earnings per share after the repurchase?
Alex, Inc. is financed 100% with equity. The firm has 100,000 shares of stock outstanding with...
Alex, Inc. is financed 100% with equity. The firm has 100,000 shares of stock outstanding with a market price of $5 per share. Total earnings for the most recent year are $50,000. The firm has $25,000 excess cash. It is considering using this excess cash to pay it out as dividend or use it to repurchase $25,000 of its own stock. The firm has other assets worth $475,000 (at market value). For each of the questions that follow, assume no...
how to solve this ? R&F Enterprises is an all equity firm with 70,000 shares of stock outstanding at a market price of $8 a share. The company has earnings before interest and taxes of $42,000...
how to solve this ?
R&F Enterprises is an all equity firm with 70,000 shares of stock outstanding at a market price of $8 a share. The company has earnings before interest and taxes of $42,000. R&F decides to issue $200,000 of debt at a 7 percent rate of interest. The $200,000 will be used to repurchase shares of the outstanding stock. Currently, you own 1,500 shares of R&F stock A) How many shares of this stock must you sell...
Hotel Ortiz is an all-equity firm that has 9,700 shares of stock outstanding at a market...
Hotel Ortiz is an all-equity firm that has 9,700 shares of stock outstanding at a market price of $31 per share. The firm's management has decided to issue $58,000 worth of debt and use the funds to repurchase shares of the outstanding stock. The interest rate on the debt will be 8 percent. What is the break-even EBIT?
Problem 14-04 Stock Repurchase A firm has 10 million shares outstanding with a market price of...
Problem 14-04 Stock Repurchase A firm has 10 million shares outstanding with a market price of $35 per share. The firm has $35 million in extra cash (short-term investments) that it plans to use in a stock repurchase; the firm has no other financial investments or any debt. What is the firm's value of operations after the repurchase? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answer...
ABC, Inc. has 25,000 shares of stock outstanding at a market price of $20. The firm...
ABC, Inc. has 25,000 shares of stock outstanding at a market price of $20. The firm has $500,000 in outstanding debt. Earnings for next year are projected at $100,000. The firm plans on spending $120,000 on capital projects next. The firm also maintains a constant debt-equity ratio. What is the projected dividend amount per share if the firm follows a residual dividend policy? A $ 20 B $ 0 c $60 D $1.20 E $1.60
Southern Wind is an all-equity firm with 16,900 shares of stock outstanding and a total market...
Southern Wind is an all-equity firm with 16,900 shares of stock outstanding and a total market value of $352,000. Based on its current capital structure, the firm is expected to have earnings before interest and taxes of $26,000 if the economy is normal, $14,000 if the economy is in a recession, and $38,000 if the economy booms. Ignore taxes. Management is considering issuing $88,000 of debt with an interest rate of 6 percent. If the firm issues the debt, the...
A firm currently has 200,000 shares of stock outstanding at a market price per share of...
A firm currently has 200,000 shares of stock outstanding at a market price per share of $120. Today, the firm announced a 2-for-1 stock split. What will the price per share be after the split? $240.00 $120.00 $40.00 $60.00
Stock Repurchase A firm has 5 million shares outstanding with a market price of $35 per...
Stock Repurchase A firm has 5 million shares outstanding with a market price of $35 per share. The firm has $40 million in extra cash (short-term investments) that it plans to use in a stock repurchase; the firm has no other financial investments or any debt. What is the firm's value of operations after the repurchase? Enter your answer in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answer to two...
Hotel Cortez is an all-equity firm that has 11,500 shares of stock outstanding at a market...
Hotel Cortez is an all-equity firm that has 11,500 shares of stock outstanding at a market price of $39 per share. The firm's management has decided to issue $70,000 worth of debt and use the funds to repurchase shares of the outstanding stock. The interest rate on the debt will be 6 percent. What is the break-even EBIT? Multiple Choice points O $27,048 eBook Ask $23,184 Print $31,697 O $29,302 $28,175
Alex, Inc. is financed 100% with equity. The firm has 100,000 shares of stock outstanding with a market price of $5 per share. Total earnings for the most recent year are $50,000. The firm has $25,000 excess cash. It is considering using this excess cash to pay it out as dividend or use it to repurchase $25,000 of its own stock. The firm has other assets worth $475,000 (at market value). For each of the questions that follow, assume no...
how to solve this ?
R&F Enterprises is an all equity firm with 70,000 shares of stock outstanding at a market price of $8 a share. The company has earnings before interest and taxes of $42,000. R&F decides to issue $200,000 of debt at a 7 percent rate of interest. The $200,000 will be used to repurchase shares of the outstanding stock. Currently, you own 1,500 shares of R&F stock A) How many shares of this stock must you sell...
Hotel Cortez is an all-equity firm that has 11,500 shares of stock outstanding at a market price of $39 per share. The firm's management has decided to issue $70,000 worth of debt and use the funds to repurchase shares of the outstanding stock. The interest rate on the debt will be 6 percent. What is the break-even EBIT? Multiple Choice points O $27,048 eBook Ask $23,184 Print $31,697 O $29,302 $28,175
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