Question: Financial information on Marine Tech Corporation is presented below. During the year, Marine Tech made a net investment in operating capital of $30 million. If

Financial information on Marine Tech is presented below. During the year, Marine Tech made a net investment in operating capital of $30 million. If the company's share price is $22, it has 10 million shares outstanding, and its tax rate is 30%, does Marine Tech have sufficient to repurchase 10% of its shares?
Marine Tech Income Statement($ M)
Sales ....................................................................... $320
Operating costs ............................................................220
Depreciation ............................................................... 20
EBIT ........................................................................ 80
Interest expense .......................................................... 10
Earnings before tax ...................................................... 70
Tax (30%) ................................................................. 21
Earnings after tax......................................................... $ 49

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