Determining stock price following stock repurchase


1) Gamma Medical's stock trades at= $115 a share. Company is contemplating 3-for-2 stock split. Supposing that stock split will have no effect on market value of its equity, determine the company's stock price following the stock split?

2) Beta Industries has net income of= $2,100,000, and it has 1,415,000 shares of common stock outstanding. Company's stock presently trades at= $57 a share. Beta is considering the plan in which it will use accessible cash to repurchase 30% of its shares in open market. Repurchase is expected to have no effect on net income or company's P/E ratio. Determine its stock price following stock repurchase?

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Finance Basics: Determining stock price following stock repurchase
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