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STOCK REPURCHASES Gamma Industries has net income of $1,400,000, and it has 925,000 shares of common...
Gamma Industries has net income of $1,400,000, and it has 1,930,000 shares of common stock outstanding....
Gamma Industries has net income of $1,400,000, and it has 1,930,000 shares of common stock outstanding. The company's stock currently trades at $68 a share. Gamma is considering a plan in which it will use available cash to repurchase 15% of its shares in the open market at the current $68 stock price. The repurchase is expected to have no effect on net income or the company's P/E ratio. What will be its stock price following the stock repurchase? Do...
STOCK REPURCHASES Gamma Industries has net income of $3,200,000, and it has 1,320,000 shares of common...
STOCK REPURCHASES Gamma Industries has net income of $3,200,000, and it has 1,320,000 shares of common stock outstanding. The company's stock currently trades at $31 a share. Gamma is considering a plan in which it will use available cash to repurchase 10% of its shares in the open market at the current $31 stock price. The repurchase is expected to have no effect on net income or the company's P/E ratio. What will be its stock price following the stock...
Gamma Industries has net income of $500,000, and it has 1,305,000 shares of common stock outstanding....
Gamma Industries has net income of $500,000, and it has 1,305,000 shares of common stock outstanding. The company's stock currently trades at $39 a share. Gamma is considering a plan in which it will use available cash to repurchase 20% of its shares in the open market at the current $39 stock price. The repurchase is expected to have no effect on net income or the company's P/E ratio. What will be its stock price following the stock repurchase? Do...
Gamma Industries has net income of $100,000, and it has 940,000 shares of common stock outstanding....
Gamma Industries has net income of $100,000, and it has 940,000 shares of common stock outstanding. The company's stock currently trades at $30 a share. Gamma is considering a plan in which it will use available cash to repurchase 15% of its shares in the open market at the current $30 stock price. The repurchase is expected to have no effect on net income or the company's P/E ratio. What will be its stock price following the stock repurchase? Do...
Gamma Industries has net income of $700,000, and it has 465,000 shares of common stock outstanding. The company's stock...
Gamma Industries has net income of $700,000, and it has 465,000 shares of common stock outstanding. The company's stock currently trades at $71 a share. Gamma is considering a plan in which it will use available cash to repurchase 30% of its shares in the open market at the current $71 stock price. The repurchase is expected to have no effect on net income or the company's P/E ratio. What will be its stock price following the stock repurchase? Do...
Stock Repurchases – Beta Industries has net income of $2,000,000, and it has 1,000,000 shares of...
Stock Repurchases – Beta Industries has net income of $2,000,000, and it has 1,000,000 shares of common stock outstanding. The company’s stock currently trades at $32 a share. Beta is considering a plan in which it will use available cash to repurchase 20% of its shares in the open market. The repurchase is expected to have no effect on new income or the company’s P/E ratio. What will be Beta’s stock price following the stock repurchase?
16.3-16.6 16-3 16-4 Intermediate Problems 4-6 16-5 STOCK REPURCHASES Beta Industries has net income of $2,000,000,...
16.3-16.6
16-3 16-4 Intermediate Problems 4-6 16-5 STOCK REPURCHASES Beta Industries has net income of $2,000,000, and it has 1,000,000 shares of common stock outstanding. The company's stock currently trades at $32 a share. Beta is considering a plan in which it will use available cash to repurchase 20% of its shares in the open market. The repurchase is expected to have no effect on net income or its stock price. What will be Beta's EPS following the stock repurchase?...
6. Stock repurchases Companies with excess cash often employ share repurchase plans in place of or...
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...
Ferrell Inc. recently reported net income of $9 million. It has 630,000 shares of common stock,...
Ferrell Inc. recently reported net income of $9 million. It has 630,000 shares of common stock, which currently trades at $29 a share. Ferrell continues to expand and anticipates that 1 year from now, its net income will be $13.05 million. Over the next year, it also anticipates issuing an additional 220,500 shares of stock so that 1 year from now it will have 850,500 shares of common stock. Assuming Ferrell's price/earnings ratio remains at its current level, what will...
Ferrell Inc. recently reported net income of $8 million. It has 280,000 shares of common stock,...
Ferrell Inc. recently reported net income of $8 million. It has 280,000 shares of common stock, which currently trades at $43 a share. Ferrell continues to expand and anticipates that 1 year from now, its net income will be $13.6 million. Over the next year, it also anticipates issuing an additional 70,000 shares of stock so that 1 year from now it will have 350,000 shares of common stock. Assuming Ferrell's price/earnings ratio remains at its current level, what will...
STOCK REPURCHASES Gamma Industries has net income of $3,200,000, and it has 1,320,000 shares of common stock outstanding. The company's stock currently trades at $31 a share. Gamma is considering a plan in which it will use available cash to repurchase 10% of its shares in the open market at the current $31 stock price. The repurchase is expected to have no effect on net income or the company's P/E ratio. What will be its stock price following the stock...
16.3-16.6
16-3 16-4 Intermediate Problems 4-6 16-5 STOCK REPURCHASES Beta Industries has net income of $2,000,000, and it has 1,000,000 shares of common stock outstanding. The company's stock currently trades at $32 a share. Beta is considering a plan in which it will use available cash to repurchase 20% of its shares in the open market. The repurchase is expected to have no effect on net income or its stock price. What will be Beta's EPS following the stock repurchase?...
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...
Ferrell Inc. recently reported net income of $8 million. It has 280,000 shares of common stock, which currently trades at $43 a share. Ferrell continues to expand and anticipates that 1 year from now, its net income will be $13.6 million. Over the next year, it also anticipates issuing an additional 70,000 shares of stock so that 1 year from now it will have 350,000 shares of common stock. Assuming Ferrell's price/earnings ratio remains at its current level, what will...
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