Need help with this question solution general accounting A firm has a market value equal to ns book value Currently, the firm hasexcess cash of s800, other assets of $5.200, and equity of $6.000 The firmhas 600 shares of stock outstanding and a net income of $500. The firmhas decided to spend half of its excess cash on a share repurchaseprogram How many shares of stock we be outstanding after the stockrepurchase is completed?a. 580 sharesb. 600 sharesc. 520 sharesd. 560 sharese. 540 shares

Excess Cash = $800Other Assets = $5,200Equity = $6,000Shares Outstanding = 600 sharesNet Income =…

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

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 11P

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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
I want to correct answer general accounting
A firm has a market value equal to its book value, excess cash of $1,000, and equity worth $20,800. The firm has 6,000 shares of stock outstanding and net income of $31,200. What will the new earnings per share be if the firm uses its excess cash to complete a stock repurchase? $4.10 $4.68 $6.56 $5.46
ed A company has the following balance sheet (market values): Liabilities + Equity Debt Equity Assets Cash Operating Assets 600 1000 400 1200 If the firm has 300, find its fair share price after it repurchases 100 worth of shares: (round your answer to the nearest 0.01)
I need answer of this question solution general accounting
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?
A company has the following balance sheet (market values): Liabilities + Equity Debt Equity Assets Cash Operating Assets 600 1000 400 1200 If the firm has 110. find the # of outstanding shares remaining after it repurchases 120 worth of shares: (round your answer to the nearest 0.01)
A firm has a market value equal to its book value. Currently, the firm has excess cash $7,000 and other assets of $21,000. Equity is worth $28,00O. 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? Multiple Choice $64 $43 $35 $39 $60
A firm has a market value equal to its book value. Currently, the firm has excess cash of $300 and other assets of $6,200. Equity is worth $5,000. The firm has 500 shares of stock outstanding and net income of $720. What will the new earnings per share be if the firm uses its excess cash to complete a stock repurchase?
The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $.50 per share, and there are 20,000 shares of stock outstanding. The market-value balance sheet for Payout is shown in the following table. Liabilities & Equity Assets $100,000 Cash Fixed $1,000,000 $1,000,000 assets 900,000 Equity Total $1,000,000 Total Required: (a.) (b.) (c.) What price is Payout stock selling for today? What price will it sell for tomorrow? Ignore taxes. Suppose that instead of paying a dividend, Payout Corp. announces that it will repurchase stock with a market value of $10,000. What happens to the stock price when the repurchase proposal is announced? Suppose that the stock is repurchased immediately after the announcement. What would be the stock price after the repurchase? (d.)
S Examine the following book-value balance sheet for University Products Incorporated. The preferred stock currently sells for $15 per share and pays a dividend of $3 a share. The common stock sells for $10 per share and has a beta of 0.9. There are 4 million common shares outstanding. The market risk premium is 8%, the risk-free rate is 4%, and the firm's tax rate is 21%. Assets Cash and short-term securities $ 3.0 Accounts receivable. 3.0 Inventories Plant and equipment Total 7.0 25.0 $ 38.0 a. Market debt-to-value ratio b. WACC BOOK-VALUE BALANCE SHEET (Figures in 5 millions) Liabilities and Net Worth Bonds, coupon 5%, paid annually (maturity 10 years, current yield to maturity = 7%) Preferred stock (par value $20 per share) Common stock (par value $0.10) Additional paid-in stockholders' equity Retained earnings Total a. What is the market debt-to-value ratio of the firm? b. What is University's WACC? Note: For all the requirements, do not round intermediate calculations. Enter your…
You are given the following information: Book value of stockholders' equity = $5 million; price/earnings ratio = 10; shares outstanding = 100,000; and the market/book ratio = .5. Calculate the market price of %3D a share of the company's stock. O $37.50 O $25.00 O $50.00 O $75.00 O $16.67

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