Chapter 14, Problem 14.17P

a)

Summary Introduction

To determine: Shares repurchase

Introduction:

Shares repurchase is where the company itself buys its own shares back.

b)

Summary Introduction

To determine: The earnings per share

Introduction:

Earnings per share refer to the earnings per share of outstanding shares of company’s common stock.

c)

Summary Introduction

To determine: Market price

Summary Introduction

To discuss:  The pre and post repurchase earnings per share.

e)

Summary Introduction

To discuss: the stockholders position under the dividend and repurchase alternatives.

Summary Introduction

To discuss: The tax implications.