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. 580 shares b. 600 shares c. 520 shares d. 560 shares e. 540 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? a. 580 shares b. 600 shares c. 520 shares d. 560 shares e. 540 shares
Chapter14: Distributions To Shareholders: Dividends And Repurchases
Section: Chapter Questions
Problem 2STP
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Transcribed Image Text: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. 580 shares
b. 600 shares
c. 520 shares
d. 560 shares
e. 540 shares
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