ECB Co. has 1 million shares outstanding selling at $20 per share. It plans to repurchase 100,000

Question:

ECB Co. has 1 million shares outstanding selling at $20 per share. It plans to repurchase 100,000 shares at the market price. What will its market capitalization be after the repurchase? What will its stock price be?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of Corporate Finance

ISBN: 978-0132148238

2nd edition

Authors: Berk, DeMarzo, Harford

See More Books

Question Posted: Jan 14, 2012 02:04 AM

See More Questions

Maltonese Inc. has 5 million shares outstanding selling at $60 each, and its price-to earningsratio (P/E) is 10. Targeton Corp. has 1.5 million shares outstanding with a market price of $30 each, and...
Fluno Corporation has 1 million shares outstanding at the end of fiscal 2005. Its stock is trading at $15 per share. It issued $0.6 million in dividends, and had net income of $1 million in fiscal...
An all-equity business has 100 million shares outstanding selling for$20 a share. Management believes that interest rates are unreasonably low and decides to execute a leveraged recapitalization (a...
Discuss sources of revenues Explain the importance of prices and volume in revenue budgeting Clarify why revenues are often ignored in nursing budgets Discuss when revenues should be considered in...
Carl Corporation acquires a business use warehouse for $200,000 on January 2, 2009. From 2009 through 2014, Carl Corporation properly deducts a total of $30,000 in depreciation. Carl incurs a net...
When KVL is applied to the three-mesh network of Fig. 4-3, the following three equations are obtained: V V. (+ RA I Ra Rc 12 RD RE 13
1. Describe "intangible" assets. 2. Is it possible for working capital to be negative? Retained earnings? Why? 3. The liquidity of assets is important to creditors. Does the liquidity of assets...
On January 1, 2017, Emporia Country Club purchased a new riding mower for $15,000. The mower is expected to have an 8-year life with a $3,000 salvage value . What journal entry would Emporia make at...
After spending the day packing merchandise into boxes for a makers convention, Jaime is ready to pack up their rental van and make the drive to the next town over. Jaime wants the unloading of the...
A 450-mm-long AISI 1020 steel rod is subjected to a tensile load of 55 kN. The allowable tensile stress is 140 MPa and the allowable total elongation is not to exceed 0.2 mm. Calculate the required...
RFC Corp. has announced a $1 dividend. If RFCs last price while trading cum-dividend is $50, what should its first ex-dividend price be (assuming perfect capital markets)?
KMS corporation has assets of $500 million, $50 million of which are cash. It has debt of $200 million. If KMS repurchases $20 million of its stock: a. What changes will occur on its balance sheet?...
Berle Corp. has a defined benefit pension plan that features the following data: January 1, 20X1 (beginning of fiscal year): Fair value of plan assets...
The key of each node in a binary search tree is a short character string. 1. Show how such a tree would look after the following words were inserted (in the order indicated): monkey canary donkey...
Write a version of the bubble sort algorithm that sorts a list of integers in descending order.
Why did we define the Map ADT to not allow duplicate key values?
Determine the Big-O measure for MergeSort based on the number of elements moved rather than the number of comparisons 1. for the best case. 2. for the worst case.
Choose the answer that correctly completes the following sentence: The number of comparisons required to find an element in a hash table with N buckets, of which M are full, 1. is always 1. 2. is...
Beginning with the cost of capital equation that is: show that the cost of equity capital for a levered firm can be written as follows: RWACC E D+E Rg+ D R D+E
During the month, services performed for customers on account amounted to $7,500 and collections from customers in payment of their accounts totaled $6,000. At the end of the month, the Accounts...
In Problem several experiments are simulated using the random number feature on a graphing calculator. For example, the roll of a fair die can be simulated by selecting a random integer from 1 to 6,...
Calculating Loan Payments You need a 30-year, fixed-rate mortgage to buy a new home for $220,000, your mortgage bank will lend you the money at a 6.8 percent APR for this 360-month loan. However, you...
Present and Future Values the present value of the following cash flow stream is $6,785 when discounted at 10 percent annually. What is the value of the missing cash flow? Year Cash Flow 1 $1,500 2 ...
Calculating Present Values You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that increase by $400,000 per year. Thus, in one year, you receive $1.4...
A rhino is charging at you, so decide to sedate it with a tranquilizer gun angled at 40 as shown above. The tranquilizer gun can reach a horizontal distance of 49 m when angled at 45. (Assume ideal...
What is the definition of motivation and how can the chef foster an environment of motivation in the kitchen? What methods can a chef implement to motivate the kitchen team? What factors contribute...
Article Review Read the article. Link is given below: https://www.projecttimes.com/articles/avoid-the-top-three-real-causes-of-scope-creep.html Post your thoughts on this article, add references if...

ECB Co. has 1 million shares outstanding selling at $20 per share. It plans to repurchase 100,000

Question:

Step by Step Answer:

Plan ECB has a market capitalization of 20 million 20 1 mil...View the full answer

Fundamentals of Corporate Finance

Students also viewed these Corporate Finance questions