STOCK REPURCHASES Gamma Industries has net income of $3,800,000, and it has 1,490,000 shares of common stock outstanding. The company’s stock currently trades at $67 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 $67 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?
Fundamentals of Financial Manageme...
Fundamentals of Financial Manageme...
Solutions
STOCK REPURCHASES Gamma Industries has net income of $3,800,000, and it has 1,490,000 shares of common stock outstanding. The company’s stock currently trades at $67 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 $67 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?
Expert Solution
Chapter 14 Solutions
Additional Business Textbook Solutions
Fundamentals of Financial Management (MindTap Course List)
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
Financial & Managerial Accounting
Corporate Financial Accounting
Cornerstones of Financial Accounting
Probability and Statistics for Engineering and the Sciences
Principles of Macroeconomics (MindTap Course List)
Principles of Economics (MindTap Course List)
Accounting Information Systems
Essentials of Business Communication (MindTap Course List)
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Foundations of Business (MindTap Course List)
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Financial And Managerial Accounting
Management, Loose-Leaf Version
Financial Accounting
Essentials of Economics (MindTap Course List)
College Accounting, Chapters 1-27
Contemporary Marketing
Intermediate Accounting: Reporting And Analysis
MKTG 12:STUDENT ED.-TEXT
Managerial Accounting: The Cornerstone of Business Decision-Making
Accounting Information Systems
Financial & Managerial Accounting
Financial Accounting
College Accounting (Book Only): A Career Approach
Fundamentals of Financial Management (MindTap Course List)
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
Statistics for Business & Economics, Revised (MindTap Course List)
Exploring Economics
College Accounting (Book Only): A Career Approach
Accounting (Text Only)
Pkg Acc Infor Systems MS VISIO CD
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Principles of Macroeconomics (MindTap Course List)
Practical Management Science
Economics (MindTap Course List)
Survey of Accounting (Accounting I)
Purchasing and Supply Chain Management
Economics For Today
Corporate Financial Accounting
Cornerstones of Cost Management (Cornerstones Series)
Macroeconomics
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Microeconomics
MACROECONOMICS FOR TODAY
Managerial Accounting
Micro Economics For Today
Microeconomics: Private and Public Choice (MindTap Course List)
Understanding Management (MindTap Course List)
Macroeconomics: Private and Public Choice (MindTap Course List)
Economics: Private and Public Choice (MindTap Course List)
