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.