The balance sheet for Quinn Corporation is shown here in market value terms. There are 5,000 shares of stock outstanding. Market Value Balance Sheet Cash Fixed assets $ 43,900 330,000 Equity $ 373,900 Total $ 373,900 Total $ 373,900 Instead of a dividend of $1.60 per share, the company has announced a share repurchase of $8,000 worth of stock. a. How many shares will be outstanding after the repurchase? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What will the price per share be after the repurchase? (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 5,000 shares of stock outstanding. Market Value Balance Sheet Cash Fixed assets $ 43,900 330,000 Equity $ 373,900 Total $ 373,900 Total $ 373,900 Instead of a dividend of $1.60 per share, the company has announced a share repurchase of $8,000 worth of stock. a. How many shares will be outstanding after the repurchase? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What will the price per share be after the repurchase? (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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Transcribed Image Text:The balance sheet for Quinn Corporation is shown here in market value terms. There are
5,000 shares of stock outstanding.
Market Value Balance Sheet
Cash
Fixed assets
$ 43,900
330,000
Equity
$ 373,900
Total
$ 373,900
Total
$ 373,900
Instead of a dividend of $1.60 per share, the company has announced a share
repurchase of $8,000 worth of stock.
a. How many shares will be outstanding after the repurchase? (Do not round
intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
b. What will the price per share be after the repurchase? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g., 32.16.)
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