Earnings per Share. Blake Company’s net income for 20X2 was $3 million. Of this amount, 40 percent will be used to purchase treasury stock. Currently, there are 1 million shares outstanding and the...

Earnings per Share. Blake Company’s net income for 20X2 was $3 million. Of this amount, 40 percent will be used to purchase treasury stock. Currently, there are 1 million shares outstanding and the market price per share is $9.

                (a) How many shares can the company buy back through a tender offer of $12 a share? (b) What is the current earnings per share? (c) What is the current P/E ratio? (d ) What will earnings per share be after the treasury stock acquisition? (e) What is the expected market price per share assuming the present P/E ratio remains the same?