Q17

The Shabaaz Co. currently has 4,000,000 shares outstanding that are selling for $24.25. The the firm's net income is $7,000,000, so the Earnings per Shares (EPS) is $1.75. The firm plans to use $5,000,000 in excess cash to repurchase shares at the current market price. If they execute this repurchase, what will be the firm's Earnings per Shares (EPS) after? 

Answer rating: 100% (QA)

To calculate the new Earnings per Share EPS after the share repurchase we can use the following ste... View the full answer