Bo's Home Manufacturing has 290,000 shares outstanding that sell for $44.10 per share. The company has...

Bo's Home Manufacturing has 290,000 shares outstanding that sell for $44.10 per share. The company has announced that it will repurchase $49,000 of its stock. What will the share price be after the repurchase?

Expert Solution

Share price after repurchase	=	Market value after repurchase/Number of shares after repurchase
	=	$ 1,27,40,000	/	2,88,889
	=	$ 44.10

Working:

# 1	Market value before repurchase			290000*44.10	=	$ 1,27,89,000
	Less Shares repurchased					$ 49,000

	Market value after repurchase					$ 1,27,40,000

# 2	Number of shares before repurchased					2,90,000
	Less number of shares repurchased		49000/44.10		=	1,111

	Number of shares after repurchased					2,88,889

jeff jeffy answered 10 months ago

Boats and Bait has 72,000 shares outstanding that sell for a price of $68 per share....

Boats and Bait has 72,000 shares outstanding that sell for a price of $68 per share. The stock has a par value of $3 per share. The company's balance sheet shows capital surplus of $155,000 and retained earnings of $195,000. If the company declares a stock dividend of 15 percent, what is the new common stock value on the balance sheet?

Harbin Manufacturing has 10 million shares outstanding with a current share price of $24.07 per share....

Harbin Manufacturing has 10 million shares outstanding with a current share price of $24.07 per share. In one year, the share price is equally likely to be $30 or $20. The risk-free interest rate is 6%. a. Using the risk-neutral probabilities, what is the value of a one-year call option on Harbin stock with a strike price of $25? b. What is the expected return of the call option? c. Using the risk-neutral probabilities, what is the value of a...

Fung Manufacturing, Inc. (FMI), currently has 275000 shares of stock outstanding that sell for $75 per...

Fung Manufacturing, Inc. (FMI), currently has 275000 shares of stock outstanding that sell for $75 per share. Assuming no market imperfections or tax effects exist, what will the share price be after: a. RMO has a two-for-five reverse stock split? b. RMO has a 6 percent stock dividend? c. RMO has a 18 percent stock dividend? d. RMO has a nine—for-two stock split? e. Redo parts a to d and determine...

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?...

Your company has earnings per share of $ 3.58 . It has 1.1 million shares? outstanding,...

Your company has earnings per share of $ 3.58 . It has 1.1 million shares? outstanding, each of which has a price of $ 43 . You are thinking of buying? TargetCo, which has earnings per share of $ 0.90 ?, 1.1 million shares? outstanding, and a price per share of $ 28 . You will pay for TargetCo by issuing new shares. There are no expected synergies from the transaction. a. If you pay no premium to buy? TargetCo,...

ABC Company has 4,985 shares outstanding at a price of $167.01 per share. What will be...

ABC Company has 4,985 shares outstanding at a price of $167.01 per share. What will be the new shares outstanding after a stock dividend of 8%. Enter your answer rounded off to two decimal points.

Your company has earnings per share of $4. It has 1million shares outstanding, each of which...

Your company has earnings per share of $4. It has 1million shares outstanding, each of which has a price of $36. You are thinking of buying TargetCo, which has earnings per share of $1, 1million shares outstanding, and a price per share of $22. You will pay for TargetCo by issuing new shares. There are no expected synergies from the transaction. Suppose you offer an exchange ratio such that, at current pre-announcement share prices for both firms, the offer represents...

Your company has earnings per share of $5. It has 1 million shares outstanding, each of...

Your company has earnings per share of $5. It has 1 million shares outstanding, each of which has a price of $36. You are thinking of buying TargetCo, which has earnings per share of $1, 1 million shares outstanding, and a price per share of $23. You will pay for TargetCo by issuing new shares. There are no expected synergies from the transaction. Suppose you offer an exchange ratio such that, at current pre-announcement share prices for both firms, the...

Kyle's company has earnings per share of $8. It has 1 million shares? outstanding, each of...

Kyle's company has earnings per share of $8. It has 1 million shares? outstanding, each of which has a price of $24. Kyle is thinking of buying? TargetCo, which has earnings per share of $4?, 1 million shares? outstanding, and a price per share of $21. Kyle will pay for TargetCo by issuing new shares. There are no expected synergies from the transaction. Complete parts? (a) through? (d) below. a. If Kyle pays no premium to buy? TargetCo, what will...

Your company has earnings per share of $6. It has 1 million shares outstanding, each of...

Your company has earnings per share of $6. It has 1 million shares outstanding, each of which has a price of $60. You are thinking of buying TargetCo, which has earnings per share of $3, & 1 million shares outstanding, and a price per share of $52.50. You will pay for TargetCo by issuing new shares. There are no expected synergies from the transaction. Complete parts a through d below. If you pay no premium to buy TargetCo, what will...

Question