ZuoTi.Pro
Question

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?

business   finance   
1 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Total earnings=Number of shares*Earning per share =37000*3.25 =120250

Shares repurchased =amount of repurchase/current price =85000/63.25 =1343.87

Shares after repurchase =37000-1343.87 =35656.13

EPS after repurchase =120250/35656.13 =3.37

1 0
Add a comment
Know the answer?
Add Answer to:
Green Thumb Nursery has 37,000 shares outstanding at a market price of $63.25 per share. The...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 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

  • 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

  • A firm has 10 million shares outstanding with a market price of $35 per share. The...

    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....

  • a 63) Firm X has total earnings ofS49,000, a market value per share of S64, abook value share of $38, and has 25,000 shares outstanding. Firm Y has total earnings of $34,000, a market value per s...

    a 63) Firm X has total earnings ofS49,000, a market value per share of S64, abook value share of $38, and has 25,000 shares outstanding. Firm Y has total earnings of $34,000, a market value per share of $21, a book value per share of $12, and has 22,000shares outstanding. Assame Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium of $2 per share. Also assume neither firm has any debe before...

  • Zetatron is an​ all-equity firm with 290million shares​ outstanding, which are currently trading for ​$9.45 per...

    Zetatron is an​ all-equity firm with 290million shares​ outstanding, which are currently trading for ​$9.45 per share. A month​ ago, Zetatron announced it will change its capital structure by borrowing $302 million in​ short-term debt, borrowing $ 291 million in​ long-term debt, and issuing $284 million of preferred stock. The ​$877 million raised by these​ issues, plus another $ 54 million in cash that Zetatron already​ has, will be used to repurchase existing shares of stock. The transaction is scheduled...

  • Cranbourne Ltd has 460 000 shares outstanding and the total market value of the equity is...

    Cranbourne Ltd has 460 000 shares outstanding and the total market value of the equity is $1 610 000. The firm has just announced a repurchase of $420 000 worth of shares. After the repurchase, Centropen will have ____ shares outstanding at a market price of ____ per share. a. 310,000; $3.30 b. 250,000; $2.59 c. 301,000; $3.10 d. 340,000; $3.50 e. 320,000; $3.40

  • 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...

  • Murphy's, Inc., has 32,450 shares of stock outstanding with a par value of $1 per share....

    Murphy's, Inc., has 32,450 shares of stock outstanding with a par value of $1 per share. The market value is $10 per share. The balance sheet shows $88,850 in the capital in excess of par account, $32,450 in the common stock account, and $157,950 in the retained earnings account. The firm just announced a stock dividend of 12 percent. What will the market price per share be after the dividend?

  • Robinson's has 46,000 shares of stock outstanding with a par value of $1 per share and...

    Robinson's has 46,000 shares of stock outstanding with a par value of $1 per share and a market price of $52 a share. The balance sheet shows $46,000 in the common stock account, $515,000 in the paid in surplus account, and $530,000 in the retained earnings account. The firm just announced a 2-for-1 stock split. How many shares of stock will be outstanding after the split? Multiple Choice 0 46,000 shares 0 23,000 shares 0 92,000 shares 0 91,500 shares...

  • Murphy's, Inc., has 31,850 shares of stock outstanding with a par value of $1 per share....

    Murphy's, Inc., has 31,850 shares of stock outstanding with a par value of $1 per share. The market value is $13 per share. The balance sheet shows $87,650 in the capital in excess of par account, $31,850 in the common stock account, and $145,950 in the retained earnings account. The firm just announced a stock dividend of 12 percent. What will the market price per share be after the dividend? $13.50 $13.00 $12.50 $11.61 $12.61

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT