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7 May, 22:50

An all equity company has a book value equal to its market value, with $43k in cash and $67k in other assets. The firm has 7.5k shares outstanding and net income of $2k.

a. If the firm uses its cash to complete a stock repurchase, what with the new EPS be?

b. If the firm used its cash to pay a $5.73 dividend, what would the new stock price be?

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  1. 8 May, 02:11
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    B

    Explanation:

    b. If the firm used its cash to pay a $5.73 dividend, what would the new stock price be?
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