Can anyone give me detailed explaination and simple solution as i didn't understand Module solution.

Sapana · 7 Nov 2025

Step 1: Calculate the market price per share The market price per share can be calculated using the P/E Ratio and the Earnings Per Share. Step 2: Calculate the total book value of the company The total book value is the product of the Book Value per Share and the number of shares outstanding. Step 3: Calculate the total cost of share repurchase The total cost of repurchasing shares is the number of shares to be repurchased multiplied by the prevailing market price per share. Step 4: Calculate the new total book value and new number of shares outstanding The new total book value is the old total book value minus the cost of the repurchase. The new number of shares outstanding is the old number of shares minus the number of shares repurchased. Step 5: Calculate the resulting book value per share The resulting book value per share is the new total book value divided by the new number of shares outstanding.

aadarsh_rk · 22 Jul 2025

Okay