How much will the eps be after the proposed repurchased

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Reference no: EM13292177

The DOTDOT Company has earnings available for common stockholders of RM4 million and has 320,000 shares of common stock outstanding at RM50 per share. The firm is currently contemplating the payment of RM3.50 per share in cash dividends.

a) Calculate the firm's current earnings per share (EPS) and price/earnings (P/E) ratio.
b) If the firm can repurchase stock at RM54 per share, how many shares can be repurchased in order of making the proposed cash dividend payment?
c) How much will the EPS be after the proposed repurchased? Why?

 

Reference no: EM13292177

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