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The balance sheet for Quinn Corporation is shown here in market value terms. There are 30,000 shares of stock outstanding. Market Value Balance Sheet $ 137,000 826,600 $963,600 Cash Fixed assets Total Equity a. The transaction will b. New shares outstanding c. Share price The compay has announced it is going to repurchase $51,000 worth of stock instead of paying a dividend of $1.70. 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. Total 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 $ $ 963,600 $963,600 28,412✔ 32.12 shareholders' equity by $ 912,600 X

The balance sheet for Quinn Corporation is shown here in market value terms. There are 30,000 shares of stock outstanding. Market Value Balance Sheet $ 137,000 826,600 $963,600 Cash Fixed assets Total Equity a. The transaction will b. New shares outstanding c. Share price The compay has announced it is going to repurchase $51,000 worth of stock instead of paying a dividend of $1.70. 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. Total 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 $ $ 963,600 $963,600 28,412✔ 32.12 shareholders' equity by $ 912,600 X

Essentials Of Investments
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
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The balance sheet for Quinn Corporation is shown here in market value terms. There are 30,000 shares of stock outstanding. Market Value Balance Sheet $ 137,000 826,600 $ 963,600 Cash Fixed assets Total Equity Total The compay has announced it is going to repurchase $51,000 worth of stock instead of paying a dividend of $1.70. 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. $ 963,600 $ 963,600 reduce 28,412 32.12 shareholders' equity by $ 912,600
Transcribed Image Text:The balance sheet for Quinn Corporation is shown here in market value terms. There are 30,000 shares of stock outstanding. Market Value Balance Sheet $ 137,000 826,600 $ 963,600 Cash Fixed assets Total Equity Total The compay has announced it is going to repurchase $51,000 worth of stock instead of paying a dividend of $1.70. 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. $ 963,600 $ 963,600 reduce 28,412 32.12 shareholders' equity by $ 912,600
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