Gamma industries has net income of 400000 and it has


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.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Gamma industries has net income of 400000 and it has
Reference No:- TGS02395282

Expected delivery within 24 Hours