Alignment

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Number

E$16$

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D

E

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Almost Done Industries has net income of $$3,800,000,$ and it has $1,490,000$ shares of common stock outstanding. The company's stock currently trades at $$67$ a share. Almost Done is considering a plan in which it will use available cash to repurchase $10\%$ of its shares in the open market at the current $$67$ stock price. The repurchase is expected to have no effect on net income or the company's P$/$E ratio. What will be its stock price following the stock repurchase?

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$17$

$18$

$19$

$20$

$21$

Optimal Capital Structure

Financial Leverage Effects

Residual Dividend Model

Stock Repurchases

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