The balance sheet for Quinn Corporation is shown here in market value terms. There are 29,000 shares of stock outstanding. Cash Fixed assets Total Market Value Balance Sheet $ 136,000 499,970 $ 635,970 Equity Total $ 635,970 $ 635,970 The compay has announced it is going to repurchase $46,400 worth of stock instead of paying a dividend of $1.60. 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
The balance sheet for Quinn Corporation is shown here in market value terms. There are 29,000 shares of stock outstanding. Cash Fixed assets Total Market Value Balance Sheet $ 136,000 499,970 $ 635,970 Equity Total $ 635,970 $ 635,970 The compay has announced it is going to repurchase $46,400 worth of stock instead of paying a dividend of $1.60. 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
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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Transcribed Image Text:The balance sheet for Quinn Corporation is shown here in market value terms. There are 29,000 shares of stock outstanding.
Cash
Fixed assets
Total
Market Value Balance Sheet
$ 136,000
499,970
$ 635,970
Equity
Total
$ 635,970
$ 635,970
The compay has announced it is going to repurchase $46,400 worth of stock instead of paying a dividend of $1.60.
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.
a. The transaction will
b. New shares outstanding
c. Share price
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.
shareholders' equity by
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