Suppose Bellwood Corp. has 52,000 shares outstanding. The price of the company's stock is $63.55 per...

Suppose Bellwood Corp. has 52,000 shares outstanding. The price of the company's stock is $63.55 per share. Bellwood Corp.'s EPS is $3.55. Total assets is $360,000 and total liabilities is $206,000. Just now, Bellwood Corp. announced a share repurchase for $115,000 of the firm's stock. What is the EPS after the shares are repurchased?

Solutions

Expert Solution

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Bad company's stock price is $35, and it has 2.0 million shares outstanding. You believe that...

Bad company's stock price is $35, and it has 2.0 million shares outstanding. You believe that if you buy the company and replace its management its value will increase by 16%. Assume that Bad has a poison pill with a 20% triggered all target shareholders-other than the acquirer-will be able to buy one new share in Bad for each share they own as an 80% discount? Assume that the price remains at 35 while you are acquiring your shares. If...

Bad company's stock price is $40, and it has 6.0 million shares outstanding. You believe that...

Bad company's stock price is $40, and it has 6.0 million shares outstanding. You believe that if you buy the company and replace its management its value will increase by 43%. Assume that Bad has a poison pill with a 15% triggered all target shareholders-other then the acquirer-will be able to buy one new share in Bad for each share they own as a 50% discount? Assume that while you the price remains at 40 while you are acquiring your...

Spicer Reports Corp has 400,000 shares of common stock outstanding, 200,000 shares of preferred stock outstanding,...

Spicer Reports Corp has 400,000 shares of common stock outstanding, 200,000 shares of preferred stock outstanding, and 40,000 bonds. If the common shares are selling for $25 per share, the preferred shares are selling for $12.50 per share, and the bonds are selling for 97 percent of par, what would be the weight used for common stock equity in the computation of Spicer's WACC? A. 18.59% B. 19.49% C. 24.37% D. 62.50% E. 79.75% Comfort Chair, Inc. has a $1.5...

Company A currently has a stock price $20/per share, with outstanding shares 2 Mil shares. It...

Company A currently has a stock price $20/per share, with outstanding shares 2 Mil shares. It also has outstanding debt of 20 Mil. Tax rate is 30%. Its annual bond with 10 year maturity date has a price now $886, par value $1000 and coupon rate is 7%. It has a beta of risk 1.2, risk free rate 4% and market index return 9%. Please answer following parts with above information Part1) what is the cost of debt before tax?...

1) A company has 3,000 shares of common stock outstanding at a price of $27 per...

1) A company has 3,000 shares of common stock outstanding at a price of $27 per share. It also has 150 bonds outstanding, each with a face value of $1,000 and currently selling at 45% of face value. The tax rate is 20%. What is the weight of debt that would be used in the calculation of the weighted average cost of capital? 2) A company has equity with a market value of $15,000 and debt with a market value...

Suppose a firm has 10 million shares of common stock outstanding at a price of $40...

Suppose a firm has 10 million shares of common stock outstanding at a price of $40 per share. The firm also has 300,000 bonds outstanding with a current price of $1050. The outstanding bonds have yield to maturity 7.1%. The firm's common stock beta is 1.4 and the corporate tax rate is 35%. The expected stock market return is 10% and the T-bill rate is 1.5%. What is the WACC for this firm? (Enter your answer to 4 decimal places...

Suppose a firm has 30.20 million shares of common stock outstanding at a price of $45.42...

Suppose a firm has 30.20 million shares of common stock outstanding at a price of $45.42 per share. The firm also has 419,000.00 bonds outstanding with a current price of $1,051.00. The outstanding bonds have yield to maturity 6.52%. The firm's common stock beta is 0.986 and the corporate tax rate is 39.00%. The expected market return is 12.52% and the T-bill rate is 4.00%. Compute the following: a. Weight of equity of the firm: b. Weight of debt of...

Suppose a firm has 34 million shares of common stock outstanding at a price of $15.5...

Suppose a firm has 34 million shares of common stock outstanding at a price of $15.5 per share. The firm also has 100,000 bonds outstanding with a current price of $1171.1. The outstanding bonds have yield to maturity 7.8%. The firm's common stock beta is 2.5 and the corporate tax rate is 38%. The expected market return is 12% and the T-bill rate is 1%. What is the WACC for this firm? Weight of Equity (3 decimals): Weight of Debt...

Q1) Suppose a firm has 16.70 million shares of common stock outstanding at a price of...

Q1) Suppose a firm has 16.70 million shares of common stock outstanding at a price of $23.23 per share. The firm also has 257000.00 bonds outstanding with a current price of $1,013.00. The outstanding bonds have yield to maturity 9.76%. The firm's common stock beta is 1.227 and the corporate tax rate is 35.00%. The expected market return is 9.87% and the T-bill rate is 5.53%. Compute the following: a) Weight of Equity of the firm b) Weight...

Suppose a firm has 19.90 million shares of common stock outstanding at a price of $27.51...

Suppose a firm has 19.90 million shares of common stock outstanding at a price of $27.51 per share. The firm also has 198000.00 bonds outstanding with a current price of $1,015.00. The outstanding bonds have a yield to maturity of 9.02%. The firm's common stock beta is 1.41 and the corporate tax rate is 39.00%. The expected market return is 14.57% and the T-bill rate is 2.93%. Compute the following: -Weight of Equity of the firm -Weight of Debt of the...

Subjects