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  3. a company has a market value equal to its book val

A company has a market value equal to its book value. Currently, the company has...

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Finance

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A company has a market value equal to its book value. Currently, the company has excess cash of $276,000 and other assets of $4,300,000. Equity is worth $1,912,500. The firm has 45,000 shares of stock outstanding and net income of $340,000. What will the new earnings per share be if the company uses its excess cash to complete a stock repurchase? $8.83 $9.17 $7.65 $6.29 $10.18 Assume the stockholders of Nemo stock are in the 25 percent tax bracket. The closing price of the stock today was $47.00 a share. The firm pays a quarterly dividend of $1.40 per share. What is the expected opening price of the stock tomorrow if tomorrow is an ex-dividend date? $46.55 $46.35 $46.15 $45.95 $45.80

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