The balance sheet for Quinn Corporation is shown here in market value terms. There are 26,000 shares of stock outstanding. Market Value Balance Sheet $ 111,000 484,920 $ 595,920 Cash Fixed assets Total Equity Total $595,920 $ 595,920 The compay has announced it is going to repurchase $33,800 worth of stock instead of paying a dividend of $1.30. a. What effect will this transaction have on the equity of the firm? Note: Input the answer as positive value. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. b. How many shares will be outstanding after the repurchase? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. c. What will the price per share be after the repurchase? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
The balance sheet for Quinn Corporation is shown here in market value terms. There are 26,000 shares of stock outstanding. Market Value Balance Sheet $ 111,000 484,920 $ 595,920 Cash Fixed assets Total Equity Total $595,920 $ 595,920 The compay has announced it is going to repurchase $33,800 worth of stock instead of paying a dividend of $1.30. a. What effect will this transaction have on the equity of the firm? Note: Input the answer as positive value. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. b. How many shares will be outstanding after the repurchase? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. c. What will the price per share be after the repurchase? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
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
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Question
Vijay
Transcribed Image Text:The balance sheet for Quinn Corporation is shown here in market value terms. There are 26,000 shares of stock outstanding.
Market Value Balance Sheet
$ 111,000
484,920
$ 595,920
Cash
Fixed assets
Total
Equity
a. The transaction will
b. New shares outstanding
c. Share price
Total
The compay has announced it is going to repurchase $33,800 worth of stock instead of paying a dividend of $1.30.
a. What effect will this transaction have on the equity of the firm?
Note: Input the answer as positive value. Do not round intermediate calculations and round your answer to the nearest
whole number, e.g., 32.
b. How many shares will be outstanding after the repurchase?
Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.
c. What will the price per share be after the repurchase?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
reduce
$ 595,920
$ 595,920
Answer is not complete.
shareholders' equity by
$ 22.92
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