Homework Answers
Current EPS = Net Income/Number of shares
= 4,200,000/720,000
= $5.8333
P/E Ratio = Price per share/Earnings per share
= 19/5.8333
= 3.2571
EPS after repurchase = 4,200,000/630,000 = $6.6666
Hence, market price per share = 6.6667*3.2571 = $21.714
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