Answered

At Westonci.ca, we connect you with the best answers from a community of experienced and knowledgeable individuals. Join our Q&A platform to connect with experts dedicated to providing precise answers to your questions in different areas. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

Green Thumb Nursery has 32,000 shares outstanding at a market price of $62.15 per share. The earnings per share are $3.15. The firm has total assets of $315,000 and total liabilities of $186,000. Today, the firm announced a share repurchase for $75,000 of its stock. What is the earnings per share after the repurchase?

Sagot :

Tundexi

Answer:

$3.27

Explanation:

Earnings = Earnings per share * Number of stock outstanding

Earnings = $3.15 * 32,000 shares

Earnings = $100,800

Number of shares repurchased = $75,000 / $62.15

Number of shares repurchased = 1206.75784393

Number of shares repurchased = 1,207

Number of stock outstanding = 32,000 - 1,207

Number of stock outstanding = 30,793

Earnings per share after the stock repurchase = Earnings / Number of stock outstanding

Earnings per share after the stock repurchase = $100,800 / 30,793

Earnings per share after the stock repurchase = $3.2734712435

Earnings per share after the stock repurchase = $3.27

We hope our answers were helpful. Return anytime for more information and answers to any other questions you may have. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.