Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. gamma industries has net income of $1,300,000, and

Gamma Industries has net income of $1,300,000, and it has 435,000 shares of common stock...

90.2K

Verified Solution

Question

Finance

Gamma Industries has net income of $1,300,000, and it has 435,000 shares of common stock outstanding. The company's stock currently trades at $41 a share. Gamma is considering a plan in which it will use available cash to repurchase 30% of its shares in the open market at the current $41 stock price. The repurchase is expected to have no effect on net income or the company's P/E ratio. What will be its stock price following the stock repurchase? Do not round intermediate calculations. Round your answer to the nearest cent.

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

Chemistry
1.2K views

Rate as a Function of Temperature: The 2 Point Arrhenius Equation 1. When the temperature is changed...

Medical Sciences
1.2K views

Describe the adaptations to the skeletal muscle with long term aerobic exercise training and long-term resistance...

Finance
1.2K views

Jemisen's firm has expected earnings before interest and taxes of $1,800. Its unlevered cost of capital...

Advance Math
1.2K views

Compare and Contrast Bubble Sort with Merge Sort. Discuss about the efficiency of both.

Biology
1.2K views

"This week we had another sign of America's strength, its economic strength, which undergirds all...

Physics
1.2K views

sider a series LR circul a switch as shown in figure If the switch 3...

Basic Math
1.2K views

Identify the information from the equation 1 Given the equation y 8 i Does this...

Basic Math
1.2K views

If the volume of a cone is 294 in^3 and the height of the cone...

Accounting
1.2K views

When a company issues 36,000 shares of $1 par value common stock for $10 per...

Accounting
1.2K views

On January 1, Year 1, Prairie Enterprises purchased a parcel of land for $12,200 cash....

Accounting
1.2K views

Accounting 1a - Fifo,Lifo and Avg Given Information Unit Cost Extended Cost...

Accounting
1.2K views

For each of the following independent cases (1-4), compute the missing values. (Enter all amounts...