What will be the effect on eps and pe ratio

Assignment Help Finance Basics
Reference no: EM13305529

Evaluating an extra dividend versus a share repurchase. In either case, $16,320 would be spent. Current earnings are $3.10 per share, and the stock currently sells for $85 per share. There are 3,400 shares outstanding. Ignore taxes and other imperfections.

What will be the effect on EPS and PE ratio under the two different scenarios?

Extra Dividend Share Repurchase
EPS $ $
PE Ratio

 

Reference no: EM13305529

Questions Cloud

What is the equilibrium constant : What is the equilibrium constant, Kc, for the reaction at this temperature?
Find the average net force that acts on him during this time : When jumping straight down, you can be seriously injured if you land stiff-legged. In a stiff-legged landing he comes to a halt in 2.5 ms. Find the average net force that acts on him during this time
What was the flotation cost as a percentage of funds raised : The initial offering price was $34.40 per share, and the stock rose to $41 per share in the first few minutes of trading. Bostitch paid $905,000 in legal and other direct costs and $250,000 in indirect costs.
Find the total length of pipe that must pass through furnace : The boiling water passes through copper pipes that have a wall thickness of 4 millimeters and a surface area of 0.12 square meters per meter length of the pipe. Find the total length of pipe (there are actually many pipes in parallel)
What will be the effect on eps and pe ratio : Evaluating an extra dividend versus a share repurchase. In either case, $16,320 would be spent. Current earnings are $3.10 per share, and the stock currently sells for $85 per share. There are 3,400 shares outstanding. Ignore taxes and other imper..
What maximum length of aluminum foil : Rolls of aluminum foil are 300mm wide and 0.013mm thick. What maximum length of aluminum foil can be made from 0.87kg of aluminum?
Determine the beat frequency he hears : James Bond is riding a bike at 15 m/s, chasing Car #1 moving in the same direction at 35 m/s. Behind James is another car, Car 2, What is the beat frequency he hears
Calculate the difference in heat loss through the roof : Your family cabin now has a roof that is rectangular, 60 feet by 20 feet, and is covered by 2 inch thick hardwood siding and tapped wood shingles. You propose adding 2 inches of cellulose fiber insulation under the hardwood.
How many dollars will a pound buy in 30 days : Suppose one British pound can purchase 1.82 U.S. dollars today in the foreign exchange market, and currency forecasters predict that the U.S. dollar will depreciate by 12.0% against the pound over the next 30 days. How many dollars will a pound bu..

Reviews

Write a Review

Finance Basics Questions & Answers

  What are the firms accounts receivables turnover

Loretta Inc., has net sales of $760,000 and accounts receivables of $168,000. What are the firm's accounts receivables turnover?

  What would be the effective cost of the bank loan

If the company could get the funds from a bank at a rate of 12%, interest paid monthly, based on a 365-day year, what would be the effective cost of the bank loan?

  What is the percentage margin the company will realize

If the UK pound appreciates against the USD to an exchange rate of $2.15/£, and Jaguar has not hedged against currency changes, what is the percentage margin the company will realize given the new exchange rate?

  How much will you pay for the company stock today

Metroplex Corporation will pay a $4.80 per share dividend next year. The company pledges to increase its dividend by 4.00 percent per year indefinitely.

  Describing firms which issue commercial paper in singapore

Write down name of 5 firms which issue commercial paper in Singapore. How did subprime crisis influence market for commercial paper in developed economics. (You only require to give overall trends, specific examples).

  Portfolio diversification stocks offer an expected rate

Portfolio Diversification Stocks offer an expected rate of return of 10% with a standard deviation of 20%, whereas gold offers an expected return of 5% with a standard deviation of 25%.

  How much cash does the company have

Saunders Corp. has a book net worth of $13,655. Long-term debt is $9,100. Net working capital, other than cash, is $3,720. Fixed assets are $18,280 and current liabilities are $1,990.

  What would be the contracts new value

What is the implied interest rate on a Treasury Bond ($100,000) futures contract that settled at 100'16? If interest rates increased by 1%, what would be the contract's new value?

  Personal finance multiple choice questions

Money received today is worth more than the same amount of money received in the future. This is true because

  Differences among horizontal-vertical-conglomerate mergers

Write down the differences among horizontal, vertical, and conglomerate mergers.

  Would a negative correlation necessarily show

Would a negative correlation necessarily show that smaller class sizes cause better performance? Explain?

  Discuss elements of financial statements

Suppose you are deciding whether or not to invest in a particular firm. Discuss which basics of which financial statements you would want to carefully examine.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd