EJH Company has a market capitalization of $1.4 billion and 25 million shares outstanding. It plans to

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EJH Company has a market capitalization of $1.4 billion and 25 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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Fundamentals Of Corporate Finance

ISBN: 9781292437156

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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Question Posted: Feb 21, 2024 10:00 AM

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EJH Company has a market capitalization of $1.4 billion and 25 million shares outstanding. It plans to

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a The price per share of EJH right before the repurchase can be calculated using the market capitali...View the full answer

Fundamentals Of Corporate Finance

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