Question: Can you please help me how the program got 202? I feel i am stocked. Assume a firm is considering a repurchase of its shares

Can you please help me how the program got 202?

I feel i am stocked.

i am stocked. Assume a firm is considering a repurchase of its

Assume a firm is considering a repurchase of its shares in the market . The firm has $1 000 000 In excess cash , $5 000 000 In earnings after taxes , and 500 ,000 shares outstanding . The stock trades at a P / E ratio of 20 . The current price of the stock is $200 ( P / EX EPS ) and the dividends per share are $2 ( excess cash / shares outstanding ) . What is the price of the stock after the shares have been reacquired ? * sorry , your answer is Incorrect Read about this $198 Missed VS202 shares reacquired = excess cash / ( price of stock + dividends per share ) . Price of new stock PEratio x EPS $49.50 $249.50

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