The balance sheet for Sinking Ship Corp. is shown here in market value terms. There are 10,000 shares of stock outstanding. Market Value Balance Sheet Cash $ 45,000 Equity $ 485,000 Fixed assets 440,000 Total $ 485,000 Total $ 485,000 Instead of a dividend of $1.90 per share, the company has announced a share repurchase of $19,000 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 Sinking Ship Corp. is shown here in market value terms. There are 10,000 shares of stock outstanding. Market Value Balance Sheet Cash $ 45,000 Equity $ 485,000 Fixed assets 440,000 Total $ 485,000 Total $ 485,000 Instead of a dividend of $1.90 per share, the company has announced a share repurchase of $19,000 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
Related questions
Question
|
The |
| Market Value Balance Sheet | ||||||
| Cash | $ | 45,000 | Equity | $ | 485,000 | |
| Fixed assets | 440,000 | |||||
| Total | $ | 485,000 | Total | $ | 485,000 | |
|
Instead of a dividend of $1.90 per share, the company has announced a share repurchase of $19,000 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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