IronWood Boats has 1

Finance Nov 27, 2020

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.

Expert Solution

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

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