EJH Company has a market capitalization of ($1.6) billion and 25 million shares outstanding. It plans to

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EJH Company has a market capitalization of $$1.6$ billion and 25 million shares outstanding. It plans to distribute $$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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Corporate Finance

ISBN: 9781292446318

6th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Apr 04, 2024 04:00 AM

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EJH Company has a market capitalization of ($1.6) billion and 25 million shares outstanding. It plans to

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a To calculate the price per share of EJH right before the repurchase we need to divide the market c...View the full answer

Corporate Finance

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