accounting 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: Understanding the Given InformationThe firm has excess cash of $1,000.Other assets are…

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

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 12P

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