A firm has a market value equal to its book value.Currently, the firm has excess cash of $1,000, other assetsof $5,500, and equity of $6,500. The firm has 650 shares ofstock outstanding and a net income of $600. The firm hasdecided to spend half of its excess cash on a sharerepurchase program.How many shares of stock will be outstanding after thestock repurchase is completed?a. 625 sharesb. 640 sharesc. 600 sharesd. 630 sharese. 615 shares

Step 1: Identify the Given InformationWe are given the following details in the question:Excess cash…

Answered: A firm has a market value equal to its…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A firm has a market value equal to its book value. Currently, the firm has excess cash of $1,100, other assets of $6,900, and equity of $8,000. The firm has 800 shares of stock outstanding and a net income of $1,000. The firm has decided to spend half of its excess cash on a share repurchase program. How many shares of stock will be outstanding after the stock repurchase is completed? a. 765 shares b. 785 shares c. 725 shares d. 745 shares e. 705 shares
A firm has a market value equal to ns book value Currently, the firm has excess cash of s800, other assets of $5.200, and equity of $6.000 The firm has 600 shares of stock outstanding and a net income of $500. The firm has decided to spend half of its excess cash on a share repurchase program How many shares of stock we be outstanding after the stock repurchase is completed? What is the Answer?
A firm has a market value equal to ns book value Currently, the firm has excess cash of s800, other assets of $5.200, and equity of $6.000 The firm has 600 shares of stock outstanding and a net income of $500. The firm has decided to spend half of its excess cash on a share repurchase program How many shares of stock we be outstanding after the stock repurchase is completed?
A firm has a market value equal to its book value. The firm has excess cash of $1,000, other assets of $6,500, and equity of $7,500. The firm has 750 shares of stock outstanding. The firm has decided to spend half of its excess cash on a share repurchase program. How many shares will be outstanding after the repurchase is completed?
A firm has a market value equal to ns book value Currently, the firm has excess cash of s800, other assets of $5.200, and equity of $6.000 The firm has 600 shares of stock outstanding and a net income of $500. The firm has decided to spend half of its excess cash on a share repurchase program How many shares of stock we be outstanding after the stock repurchase is completed? Please show me how to solve this financial accounting problem using valid calculation techniques.
A firm has a market value equal to its book value. Currently, the firm has excess cash of $1,800 and other assets of $5,700. Equity is worth $7,500. The firm has 750 shares of stock outstanding and net income of $1,500. The firm has decided to spend all of its excess cash on a share repurchase program. How many shares of stock will be outstanding after the stock repurchase is completed?
Brightland Inc. has a market value equal to its book value. Currently, thefirm has excess cash of $1,500, other assets of $5,800, and equity valuedat $5,000. The firm has 250 shares of stock outstanding and net income of$500. What will the new earnings per share be if the firm uses 30 percentof its excess cash to complete a stock repurchase?
A firm has a market value equal to its book value. Currently, the firm has $500,000 of excess cash, $4,500,000 in other assets, $1,000,000 in liabilities, $40,000 in common stock at $1 par, $0 in retained earnings, and $30,000 in net income. Assume that the firm uses all of its excess cash to repurchase some of its shares outstanding. How many shares will be outstanding after the repurchases are completed? (Round, if necessary, your final answer to the whole number).
Blasco's has a market value equal to its book value. Currently, the firm has excess cash of €1,332, other assets of €11,674, and equity of €7,200. The firm has 1200 shares outstanding and net income of €838. Blasco's has decided to spend one-third of its excess cash on a share repurchase program. How many shares will be outstanding after the share repurchase is completed? Show your steps. Jefferson Refining is issuing a rights offering wherein every shareholder will receive one right for each share of equity they own. The new shares in this offering are priced at £21 plus 3 rights. The current market value of the equity is £75 million with 3 milion shares outstanding. What is the value of one right? Show your steps. If an IPO is underpriced then the: investors in the IPO are generally unhappy with the underwriters. issue is less likely to sell out. share price will increase on the first day of trading. issuing firm is guaranteed to be…
A firm has a market value equal to its book value. Currently, the firm has excess cash of $7,000 and other assets of $21,000. Equity is worth $28,000. The firm has 600 shares of stock outstanding and net income of $2,400. What will the stock price per share be if the fim pays out Its excess cash as a cash dividend?
The value of firm is equal to value of debt plus value of equity. Assume the firm has 4 million shares outstanding currently selling at $25 per share, and it decides to issue 50 million in debt to repurchase 2 million shares, how would this affect the value before/ after.
Firm B has a net income of $2 million and has 1 million shares of common stocks outstanding. Firm B’s shares currently trade at $32 per share. The management is planning to use available cash to purchase 20% of Firm B’s shares in the open market. The repurchase is expected to have no effect on either net income or Firm B’s P/E ratio. What will be the share price of Firm B following the share repurchase? After 5 to 1 share split, Firm S paid a dividend of $0.75 per share, which represents 9 percent increase over last year’s pre-split dividend. What was last year’s dividend per share?

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS