Answered

Looking for reliable answers? Westonci.ca is the ultimate Q&A platform where experts share their knowledge on various topics. Join our Q&A platform to connect with experts dedicated to providing precise answers to your questions in different areas. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform.

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

Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. We appreciate your time. Please come back anytime for the latest information and answers to your questions. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.