Beta Industries has net income of $2,000,000, and it has 1,000,000 shares of common stock outstanding. The company’s stock currently trades at $32 a share. Beta is considering a plan which it will use available cash to repurchase 20% of its shares in the open market. The repurchase is expected to have no effect on net income or the company’s P/E ratio. What will be Beta’s stock price following the stock repurchase?
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