Crozet Corporation plans to borrow just enough money to repurchase 100,000 shares. The following information relates to
Posted: Fri Jul 01, 2022 7:37 am
Crozet Corporation plans to borrow just enough money torepurchase 100,000 shares. The following information relates to theshare repurchase: Shares outstanding before buyback 4.5 millionEarnings per share before buyback $5.00 Share price at time ofbuyback $50 After tax cost of borrowing 9% Crozet’s earnings pershare after the buyback will be closest to: