Can you please help me how the program got 202?
I feel i am stocked.
Assume a firm is considering a repurchase of its shares in the market . The firm has $1 000 000In excess cash , $5 000 000 In earnings after taxes , and 500 ,000 shares outstanding . The stocktrades at a P / E ratio of 20 . The current price of the stock is $200 ( P / EX EPS ) and the dividendsper share are $2 ( excess cash / shares outstanding ) . What is the price of the stock after theshares have been reacquired ?* sorry , your answer is IncorrectRead about this$198MissedVS202shares reacquired = excess cash / ( price of stock + dividends per share ) . Price of new stockPEratio x EPS$49.50$249.50