The balance sheet for Quinn Corporation is shown here in market value terms. There are 28,000 shares of stock outstanding.Market Value Balance SheetCash$ 130,000 Fixed assets494,960Equity$ 624,960Total$ 624,960Total$ 624,960The compay has announced it is going to repurchase $42,000 worth of stock instead of paying a dividend of $1.50.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.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.What will the price per share be after the repurchase?

A share repurchase, also known as a stock buyback, enables a company to invest in itself. The…

Answered: The balance sheet for Quinn Corporation…

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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The balance sheet for Quinn Corporation is shown here in market value terms. There are 28,000 shares of stock outstanding.

Market Value Balance Sheet
Cash	$ 130,000
Fixed assets	494,960	Equity	$ 624,960
Total	$ 624,960	Total	$ 624,960

The compay has announced it is going to repurchase $42,000 worth of stock instead of paying a dividend of $1.50.

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.
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.
What will the price per share be after the repurchase?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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