AMC Corporation currently has an enterprise value of $390 million and $115 million in excess cash The firm has 20 million shares outstanding and no debt. Suppose AMC uses its excess cash to repurchase shares. After the share repurchase, news will come out that will change AMC's enterprise value to either $500 million or $190 million What is AMC's share price after the repurchase if its enterprise value goes up? What is AMC's share price after the repurchase if its enterprise value declines? AMC's share price after the repurchase if its enterprise value goes up is (Round to two decimal places)

AMC Corporation currently has an enterprise value of $390 million and $115 million in excess cash The firm has 20 million shares outstanding and no debt. Suppose AMC uses its excess cash to repurchase shares. After the share repurchase, news will come out that will change AMC's enterprise value to either $500 million or $190 million What is AMC's share price after the repurchase if its enterprise value goes up? What is AMC's share price after the repurchase if its enterprise value declines? AMC's share price after the repurchase if its enterprise value goes up is (Round to two decimal places)

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter15: Distributions To Shareholders: Dividends And Repurchases

Section: Chapter Questions

Problem 6MC: Suppose IWT has decided to distribute $50 million, which it presently is holding in liquid...

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Question

AMC Corporation currently has an enterprise value of $390 million and $115 million in excess cash. The firm has 20 million shares outstanding and no debt Suppose AMC uses its excess cash to
Krepurchase shares. After the share repurchase, news will come out that will change AMC's enterprise value to either $500 million or $190 milion
What is AMC's share price after the repurchase if its enterprise value goes up? What is AMC's share price after the repurchase if its enterprise value declines?
AMC's share price after the repurchase if its enterprise value goes up is 5 (Round to two
two decimal pla

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