User Account

All Pages

What will be its earnings per share after the repurchase

Assignment Help Accounting Basics
Reference no: EM132350608

Question - (Stock repurchases and earnings per share) CareMore, Inc. provides in-home medical assistance to the elderly and net income of $5 million that it plans to use to repurchase shares of the firm's common stock, which is currently selling for $50 a share. CareMore has 20 million shares of stock outstanding.

a. What fraction of the firm's shares can the firm repurchase for $5 million?

b. If the share repurchase has no impact on the firm's net income, what will be its earnings per share after the repurchase?

Reference no: EM132350608

Questions Cloud

Identify four weaknesses in control procedures : Identify four weaknesses in control procedures based on the controller's description of the company's payroll system
About the technology security : Write on any topic related to technology security.
Describe substitutes for strategic alliances : Describe the two substitutes for strategic alliances that were discussed in the text. Include a brief explanation of the limits of each to act as substitutes.
Database and data warehousing design : Create a schema that supports the company's business and processes. Explain and support the database schema with relevant arguments that support the rationale
What will be its earnings per share after the repurchase : If the share repurchase has no impact on the firm's net income, what will be its earnings per share after the repurchase
Examine ethical issues related to cross-cultural research : While many psychologists may be familiar with ethical considerations in their own culture, such as the use of Institutional Review Boards (IRBs) to review.
What method would you use to allocate the expenses : What method would you use to allocate the $1 billion to the many expenses incurred in a huge hospital system
Transforming the organization : CIS 500-How much of the implementation work can you handle? What additional resources (people, information, time, money, etc.) will expedite the process
Describe the overall design of the study you selected : Describe the overall design of the study you selected. Describe the type of methodology used (i.e., qualitative, quantitative, or mixed method).

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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