### Question on stock repurchase

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##### Reference no: EM1337608

Beta Industries has a net income of \$2,000,000 and it has \$1,000,000 shares of common stock outstanding. The company's stock currently trades @\$32 a share. Beta is considering a plan in which it will use available cash to repurchase 20% of its shares in the open market. The repurchase is expected to have no effect on either net income or the company's P/E ratio. What will be its stock price following the stock repurchase?

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