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Homework answers / question archive / IronWood Boats has 1
IronWood Boats has 1.78 million shares outstanding, a market price of $48.40 per share, and net income of $3,273,776. Management plans to repurchase 128,000 shares in the near future. Once the buyback has been completed, the EPS for IronWood will be closest to:
| A. |
$1.98. |
|
| B. |
$1.72. |
|
| C. |
$1.84. |
Shares after buyback = 1,780,000 - 128,000 = 1,652,000 shares
EPS = Net income / shares
EPS = 3,273,776 / 1,652,000
EPS = $1.98
