ECB Co. has 1.35 milion shares outstanding seling at $17 per share. It plans to repurchase...
ECB Co. has 1 million shares outstanding selling at $20 per share. It plans to repurchase 100,000 shares at the market price. What will be its market capitalization after the repurchase? What will be its stock price? The market capitalization after the repurchase is million. (Round to The stock price per share will be $ (Round to the nearest dollar.) three decimal places.)
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...
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 $1.23 million should be entered as 1.23, not 1,230,000. Round your answer to two decimal places....
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...
EJH Company has a market capitalization of $2.4 billion and 45 million shares outstanding. It plans to distribute $ 105 million through an open market repurchase. Assuming perfect capital markets: a. What will be the price per share of EJH right before the repurchase? b. How many shares will be repurchased? c. What will be the price per share of EJH right after the repurchase?
2. What will the price per share be after the repurchase? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) The balance sheet for Sinking Ship Corp. is shown here in market value terms. There are 14,000 shares of stock outstanding. Market Value Balance Sheet Cash $ 53,700 Equity $ 438,700 Fixed 385,000 assets 438,700 Total $ Total 438,700 $ Instead of a dividend of $1.30 per share, the company has announced a share...
Companies with excess cash often employ share repurchase plans in place of or along with cash dividends. Share repurchase plans can help investors liquidate their holdings by selling their stock to the issuing company and earning from capital gains. Consider the case of St. Sebastian Company: St. Sebastian Company has forecasted a net income of $5,100,000 for this year. Its common stock currently trades at $20 per share, and the company currently has 790,000 shares of common stock outstanding. It...
6. Stock repurchases Companies with excess cash often employ share repurchase plans in place of or along with cash dividends. Share repurchase plans can help investors liquidate their holdings by selling their stock to the issuing company and earning from capital gains. Consider the case of St. Sebastian Company: St. Sebastian Company has forecasted a net income of $5,300,000 for this year. Its common stock currently trades at $21 per share, and the company currently has 830,000 shares of common...
MID Co. has 10 million shares outstanding and each share is currently worth $50. The company made $35 million in after-tax profits during 2010 and plans to buy back shares worth $11 million at the end of the year. Given that the company will be able to repurchase the shares at a 10% premium to the current market price, what is the company’s EPS after the share repurchase?
1. XYZ Manufacturers plans to repurchase $10 million worth of common stock with borrowed funds. The following information is provided: Repurchase price = $25 Net income after tax = $120 million EPS before repurchase = $1.5 Given that the company finances the repurchase by borrowing at an after-tax interest rate of 13.5%, what is the EPS after the repurchase? 2. MID Co. has 10 million shares outstanding and each share is currently worth $50. The company made $35 million in...