What will be the new number of outstanding shares ? Brightwave Media had 50,000 outstanding shares, each trading at $25. The company repurchased5,000 shares at the market price. How does this stock buyback affect total shareholders' equity, andwhat will be the new number of outstanding shares?

Effect on Outstanding Shares:• Initial outstanding shares: 50,000• Shares repurchased: 5,000• New…

Answered: Brightwave Media had 50,000 outstanding…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation

Section: Chapter Questions

Problem 9MC

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Brightwave Media had 50,000 outstanding shares, each trading at $25. The company repurchased 5,000 shares at the market price. How does this stock buyback affect total shareholders' equity, and what will be the new number of outstanding shares?