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Rzqust [24]
3 years ago
6

Quaker State Wings has 320,000 shares outstanding and net income of $980,000. The company stock is currently selling for $62.97

per share. If the company repurchases $634,000 of its stock, what is the earnings per share after the repurchase
Business
1 answer:
ELEN [110]3 years ago
5 0

Answer:

The new EPS is $ 3.16  

Explanation:

In order to compute the earnings per share after the share repurchase the shares repurchased must deducted from the weighted average number of share of 320,000 before repurchase so as  to arrive at the number of shares eligible for the earnings after such repurchase.

The number of shares repurchased=$634,000/$62.97

                                                           = 10,068.29  

The average weighted number of shares after repurchase is  309,931.71  (320,000-10,068.29)

EPS after repurchase=$980,000/309,931.71

                                   =$3.16 per share

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Answer:

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1 year ago
Let’s suppose you would like to buy a home for $250,000. But like most U.S. citizens, you don’t have enough cash on hand to pay
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the loan's interest rate is missing, so I looked for a similar question and found that it is 6%

present value = monthly payment x annuity factor

monthly payment = present value / annuity factor

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