The repurchase is expected to have no effect on net income


Stock repurchases

Gamma Industries has net income of $600,000, and it has 1,840,000 shares of common stock outstanding. The company's stock currently trades at $62 a share. Gamma is considering a plan in which it will use available cash to repurchase 30% of its shares in the open market at the current $62 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.

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Financial Management: The repurchase is expected to have no effect on net income
Reference No:- TGS02345114

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