EJH Company has a market capitalization of $1.3 billion and 10 million shares outstanding. It plans to

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EJH Company has a market capitalization of $1.3 billion and 10 million shares outstanding. It plans to distribute $120 million through an open market repurchase. Assuming perfect capital markets:

a. What will the price per share of EJH be right before the repurchase?

b. How many shares will be repurchased?

c. What will the price per share of EJH be right after the repurchase?

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Corporate Finance The Core

ISBN: 9781292158334

4th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Feb 29, 2024 04:00 AM

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EJH Company has a market capitalization of $1.3 billion and 10 million shares outstanding. It plans to

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Corporate Finance The Core

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