dionnecherry70 dionnecherry70

06-07-2024
Mathematics

Answered

Financial Alchemists (FA) has a market value equal to its book value. Currently, FA has
cash on hand of $2400 and other assets of $8,500. Equity is worth $6,000. FA has 200
shares of stock outstanding and net income of $1200. How much greater will earnings
per share be if FA uses its cash to repurchase some of its own stock?

Answer :

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