The balance sheet for Tempest, Inc., is shown here in market value terms. There are29,000 shares of stock outstanding.Market Value Balance SheetCashFixed assets$156,000560,010 Equity$716,010Total$ 716,010Total$716,010The compay has announced it is going to repurchase $49,300 worth of stock instead ofpaying a dividend of $1.70.a. What effect will this transaction have on the equity of the firm? (Input the answer aspositive value. Do not round intermediate calculations and round your answer tothe nearest whole number, e.g., 32.)b. How many shares will be outstanding after the repurchase? (Do not roundintermediate calculations and round your answer to the nearest wholenumber, e.g., 32.)c. What will the price per share be after the repurchase? (Do not round intermediatecalculations and round your answer to 2 decimal places, e.g., 32.16.)a. The transaction willb. New shares outstandingc. Share priceshareholders' equity by

it is given that: Equity 716,010 No of shares 29,000 Repurchase value 49,300

Answered: The balance sheet for Tempest, Inc., is…

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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