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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but your right, its b. wired
Answer and Explanation:
The indication of the following transactions for the cash flow statement is given below:
a. Operating activities
b. Operating activities
c. Financing activities
d. Financing activities
e. None
f. Financing activities
g. Investing activities
h. Investing activities
i. Operating activities
j. OPerating activities
Answer:
9.62%
Explanation:
Re = Rf + (B x Rp)
Re = cost of equity = 9.775%
Rf = risk free rate = 4%
B = beta = 1.05
Rp = risk premium = ?
Rp = (Re - Rf) B = (9.775% - 4%)/1.05 = 5.5%
Re portfolio = Rf + {Rp x [(B₁ x $5/$5.5) + (B₂ x $0.5/$5.5)]}
Re portfolio = 4% + {5.5% x [(1.05 x $5/$5.5) + (0.75 x $0.5/$5.5)]}
Re portfolio = 4% + {5.5% x [0.9545 + 0.0682]}
Re portfolio = 4% + 5.6249% = 9.62%
