Suppose TPS Corp. distributes its cash using an open market repurchase. a.) What are the shares outstanding after the repurchase? b.) Assuming perfect capital markets, what is the change in the stock price? Cash $500.00 Shares outstanding 50.00 Current stock price $200.00 a.) New shares outstanding calculation: Shares repurchased New shares outstanding b.) Change in share price
Suppose TPS Corp. distributes its cash using an open market repurchase. a.) What are the shares outstanding after the repurchase? b.) Assuming perfect capital markets, what is the change in the stock price? Cash $500.00 Shares outstanding 50.00 Current stock price $200.00 a.) New shares outstanding calculation: Shares repurchased New shares outstanding b.) Change in share price
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
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Suppose TPS Corp. distributes its cash using an open market repurchase. a.) What are the shares outstanding after the repurchase? b.) Assuming perfect capital markets, what is the change in the stock price? |
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Cash |
$500.00 |
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Shares outstanding |
50.00 |
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Current stock price |
$200.00 |
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a.) New shares outstanding calculation: |
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Shares repurchased |
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New shares outstanding |
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b.) Change in share price |
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