The arndt company repurchased 50,000 shares of its own common stock on the stock exchange during 2019. at the end of 2018, arndt had 750,000 shares of its common stock outstanding, during 2019, no preferred dividends were paid but $350,000 of dividends were paid on common stock. net income for 2019 was $3,300,000. which of the following is not true for 2019 based only on the above information? a. earnings per share would be calculated using 350,000/750,000. b. stockholders equity would decrease because of the dividends paid. c. earnings per share for 2019 is higher because of the stock repurchase than if the purchase had not been made. d. the purchase of treasury stock will reduce cash during 2019.

Burke enterprises is considering a machine costing $30 billion that will result in initial after-tax cash savings of $3.7 billion at the end of the first year, and these savings will grow at a rate of 2 percent per year for 11 years. after 11 years, the company can sell the parts for $5 billion. burke has a target debt/equity ratio of 1.2, a beta of 1.79. you estimate that the return on the market is 7.5% and t-bills are currently yielding 2.5%. burke has two issuances of bonds outstanding. the first has 200,000 bonds trading at 98% of par, with coupons of 5%, face of $1000, and maturity of 5 years. the second has 500,000 bonds trading at par, with coupons of 7.5%, face of $1000, and maturity of 12 years. kate, the ceo, usually applies an adjustment factor to the discount rate of +2 for such highly innovative projects. should the company take on the project?