Stock repurchase announcement

Assignment Help Accounting Basics

Reference no: EM13141240

The equity of Enterprise Holdings, Inc has a market value of $3 million. It currently has 300,000 shares outstanding, and a book value of equity of $1,095,000. An unexpected cash windfall has prompted management to consider either a special dividend of $6.00 per share or stock repurchase for cash.

a. If management estimates that a stock repurchase announcement will increase stock price by 5 percent, how many shares should they be prepared to repurchase?

b. Can you think of any reasons a share repurchase might be preferable to a special dividend?

Reference no: EM13141240

Questions Cloud

Explain java programming with commented code : Java Programming with Commented Code, A marketing research company has hired you to develop a program. Analytics Nation, Inc. has gathered information from about five different products. They would like to follow up with 1% of these households.

Problem related to marginal tax rate for firm : For the year ending June 30, 2008, the Austin Corporation has current assets of $ 275,000 and total assets of $ 900,000. It also has current liabilities of $ 150,000, equity of $ 200,000, and retained earnings of $ 100,000. The marginal tax rate f..

What is the likely that the negotiations wi end successfully : after a one hour stand-off, what is the likelihood (in percentages) that the negotiation will end successfully? After four hours? After eight hours?

Define a sinusoidal voltage has a maximum value : A sinusoidal voltage has a maximum value of 100V, and the value is 10V at t=0. The period is T=1ms. Determine v(t)

Stock repurchase announcement : If management estimates that a stock repurchase announcement will increase stock price by 5 percent, how many shares should they be prepared to repurchase?

What is the partial pressure of argon in the flask : A 1 L flask is filled with 1.45 g of argon at 25 C}. A sample of ethane vapor is added to the same flask until the total pressure is 1.25 atm.what is the partial pressure of argon in the flask?

Determine the capacitance required in a half wave : Determine the capacitance required in a half wave rectifier to produce a ripple voltage less than 0.2V. Assume that the input is a 60Hz signal with maximum voltage VM=100V

This thesis artefact is flexible : This thesis artefact is flexible in a sense that helper can use any other sort of tools to accomplish the task as long as it matches with the aim but please, let me know how he/ she going to do it.

What is the partial pressure of the co2 : If carbon dioxide gas is collected over water at 25C and 775 torr, what is the partial pressure of the CO2? The vapor pressure of water is 23.8 torr at 25C.

User Account

All Pages