Answer: $24
Step-by-step explanation:
From the question, ECB will have a market capitalization of:
= $24 × 1,150,000
= $27,600,000
We are further told that It plans to repurchase 97,000 shares at the market price using its cash reserves, therefore it will need to pay:
= $24 × 97,000
= $2,328,000
The new market capitalization will be:
= $27,600,000 - $2,328,000
= $25,272,000
Its share price will now be:
= $25,272,000/(1,150,000 - 97,000)
= $25,272,000/1,053,000
= $24
The stock price is still $24