My problem with accounting question SunTech Industries had 125,000 outstanding shares, each trading at $45. Thecompany repurchased 15,000 shares at the market price. How does this stockrepurchase affect total shareholders' equity, and what will be the new numberof outstanding shares?

Step 1: Calculate the total cost of the repurchaseSunTech Industries repurchased 15,000 shares at a…

Answered: SunTech Industries had 125,000…

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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SunTech Industries had 125,000 outstanding shares, each trading at $45. The company repurchased 15,000 shares at the market price. How does this stock repurchase affect total shareholders' equity, and what will be the new number of outstanding shares?