If management’s assumptions hold, what is the expected per-share market price after repurchase?

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter15: Capital Structure Decisions
Section: Chapter Questions
Problem 11P: The Rivoli Company has no debt outstanding, and its financial position is given by the following...
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National Inc. believes that at its current stock price of P15.00 the firm is undervalued in the market.  National plans to repurchase 2,400,000 of its 20,000,000 shares outstanding.  The firm’s managers expect that they can repurchase the entire 2,400,000 shares at the expected equilibrium price after repurchase.  The firm’s current earnings are P44,000,000.  If management’s assumptions hold, what is the expected per-share market price after repurchase? Use 5 decimal places in your computation
 
Answer Format: 11.11
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