Winton Capital has 20,000 shares of stock outstanding at a market price of $8 a share. The firm has decided to distribute exactly 100% of its earnings to shareholders in the form of a regular cash dividend.  Before the buyback, the declared dividends per share are $1.27. The firm has total assets of $286,000 and total liabilities of $86,000. Next week, the firm will be repurchasing $40,000 worth of stock. Ignore taxes. What will be the EPS after the stock repurchase?

Answer rating: 100% (QA)

To calculate the earnings per share EPS after the stock repurchase we need to consider the change in ... View the full answer