Computation of company stock price

Reference no: EM1354125

Company x has net income of $2,000,000 and it has $1,000,000 share of common stock outstanding. the company's stock currently trades at $32 per share. Company x is considering a plan, in which it will use available cash to repurchase 40% of its shares in the open market. the repurchase is expected to have no effect on the net income or the company's P/E ratio. what would be company x's stock price following the stock repurchase?

Reference no: EM1354125

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