Problembeta industries has net income of 1900000 and it has, Ask an Expert

Finance

Problem:

Beta Industries has net income of $1,900,000, and it has 1,410,000 shares of common stock outstanding. The company's stock currently trades at $61 a share. Beta is considering a plan in which it will use available cash to repurchase 30% of its shares in the open market. The repurchase is expected to have no effect on net income or the company's P/E ratio.

Required:

Question: What will be its stock price following the stock repurchase?

Note: Please provide step by step solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91174600

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