Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. abc stores has 20,000 shares outstanding at a mark

ABC Stores has 20,000 shares outstanding at a market price per share of $40. The...

80.2K

Verified Solution

Question

Accounting

image

ABC Stores has 20,000 shares outstanding at a market price per share of $40. The net income is $30,000.

  1. What is the current market value of equity, earnings per share (EPS) and price-earnings (PE) ratio?
  2. The company has decided to repurchase $100,000 worth of shares. What are the number of shares repurchased, new shares outstanding, new price per share, new market value of equity, new EPS, and new PE ratio?
  3. Suppose instead that the firm pays a cash dividend with a total value of $100,000. What are the dividends per share (DPS), new shares outstanding, new price per share, new market value of equity, new EPS, and new PE ratio?

Please show work i cant do it without work.

Stock Repurchases versus Cash Dividends ABC Stores has 20,000 shares outstanding at a market price per share of $40. The net income is $30,000. 1. What is the current market value of equity, earnings per share (EPS) and price-earnings (PE) ratio? 2. The company has decided to repurchase $100,000 worth of shares. What are the number of shares repurchased, new shares outstanding, new price per share, new market value of equity, new EPS, and new PE ratio? 3. Suppose instead that the firm pays a cash dividend with a total value of $100,000. What are the dividends per share (DPS), new shares outstanding, new price per share, new market value of equity, new EPS, and new PE ratio? Also upload your excel files showing your work

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students