Lester's Has a Market Value Balance Sheet as Shown Below

question 3

Multiple Choice

Lester's has a market value balance sheet as shown below.The firm currently has 7,500 shares of stock outstanding at a price per share of $40.Net income is $9,500. The firm has decided to repurchase $20,000 worth of its outstanding stock.What will the firm's PE ratio be after this repurchase,all else held constant?

• A)23.39
• B)28.76
• C)29.47
• D)30.13
• E)32.16

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A government health insurance program for individuals and families with low income and resources.