Question: A stock is currently trading for $ 4 1 . The company has a price earnings multiple of 1 0 . There are 1 0

A stock is currently trading for $41. The company has a priceearnings multiple of 10. There are 100 million shares outstanding. Your model indicates that the stock is actually worth $32. The company announces that it will use $300 million to repurchase shares. After the repurchase, what is the actual price-earnings ultiple of the stock?
8.79
10
9.12
9.27

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