Question: A firm has 5 million shares outstanding with a market price of $20 per share. The firm has $35 million in extra cash (short-term investments) that it plans to use in a stock repurchase; the firm has no other financial investments or any debt. What is the firm's value of operations after the repurchase? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answer to two decimal places. How will remain after the Round your your answer whole number. many shares repurchase? to to the nearest

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question:
A firm has 5 million shares
outstanding with a market price of
$20 per share. The firm has $35
million in extra cash (short-term
investments) that it plans to use
in a stock repurchase; the firm has
no other financial investments or
any debt. What is the firm's value
of operations after the repurchase?
Enter your answer in millions. For
example, an answer of $1.2 million
should be entered as 1.2, not
1,200,000. Round your answer to two
decimal places. How
will remain after the
Round your
your answer
whole number.
many shares
repurchase?
to
to the nearest
Transcribed Image Text:Question: A firm has 5 million shares outstanding with a market price of $20 per share. The firm has $35 million in extra cash (short-term investments) that it plans to use in a stock repurchase; the firm has no other financial investments or any debt. What is the firm's value of operations after the repurchase? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answer to two decimal places. How will remain after the Round your your answer whole number. many shares repurchase? to to the nearest
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