Consider the balance sheet entries and other financial data for Rhino Company below. All are in...
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Consider the balance sheet entries and other financial data for Rhino Company below. All are in market value. Sean is the Chief Financial Officer (CFO) for Rhino. Sean is going to execute a stock repurchase with all the available cash on the balance sheet. What is the company's P/E after the stock repurchase assuming earnings remain constant? Rhino Company Assets Cash 750.000 Debt Other Assets 3.000.000 Equity Total 3,750.000 Total Priceo EPS P/E 8.750 1.750 5.000 Liabilities 2,000.000 1,750.000 3,750.000 Consider the balance sheet entries and other financial data for Rhino Company below. All are in market value. Sean is the Chief Financial Officer (CFO) for Rhino. Sean is going to execute a stock repurchase with all the available cash on the balance sheet. What is the company's P/E after the stock repurchase assuming earnings remain constant? Rhino Company Assets Cash 750.000 Debt Other Assets 3.000.000 Equity Total 3,750.000 Total Priceo EPS P/E 8.750 1.750 5.000 Liabilities 2,000.000 1,750.000 3,750.000
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Step 12 Market value of equity 1750000 price 875 Existing number of shares Market value of equitypri... View the full answer
Related Book For
College Accounting Chapters 1-30
ISBN: 978-0077862398
14th edition
Authors: John Price, M. David Haddock, Michael Farina
Posted Date:
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