What will be its stock price the stock repurchase

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Stock repurchases

Gamma Industries has net income of $400,000, and it has 1,940,000 shares of common stock outstanding. The company's stock currently trades at $39 a share. Gamma is considering a plan in which it will use available cash to repurchase 25% of its shares in the open market at the current $39 stock price. The repurchase is expected to have no effect on net income or the company's P/E ratio. What will be its stock price following the stock repurchase? Do not round intermediate calculations. Round your answer to the nearest cent.

Reference no: EM131599740

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