Mega Shares Limited has 1 million shares outstanding and earnings of R40 million. The firm decides to use R200 million in cash to repurchase shares in the open market. These shares are trading at R1000 per share. What will be the Mega Shares earnings per share after the transaction?

Answer rating: 100% (QA)

First lets calculate the number of shares Mega Shares Limited can repurchase with R200 ... View the full answer