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Question: A firm has 10 million shares outstanding with a market price of $20 per share. The firm has $25 million in extra cash (short-term investments) that it plans to use in a stock repurchase; the firm other has no financial investments or any debt. What value of and how many is the firm's shares will remain after the operation, repurchase?

Question: A firm has 10 million shares outstanding with a market price of $20 per share. The firm has $25 million in extra cash (short-term investments) that it plans to use in a stock repurchase; the firm other has no financial investments or any debt. What value of and how many is the firm's shares will remain after the operation, repurchase?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question: A firm has 10 million shares outstanding with a market price of $20 per share. The firm has $25 million in extra cash (short-term investments) that it plans to use in a stock repurchase; the firm other has no financial investments or any debt. What value of and how many is the firm's shares will remain after the operation, repurchase?
Transcribed Image Text:Question: A firm has 10 million shares outstanding with a market price of $20 per share. The firm has $25 million in extra cash (short-term investments) that it plans to use in a stock repurchase; the firm other has no financial investments or any debt. What value of and how many is the firm's shares will remain after the operation, repurchase?
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