The balance sheet for Throwing Copper, Inc., is shown here in market value terms. There are 28,000 shares of stock outstanding. Market Value Balance Sheet: Cash $ 111,000, Fixed assets 524,600, Equity $ 635,600, Total $ 635,600. The company has announced it is going to repurchase $22,400 worth of stock instead of paying a dividend of $.80. What effect will this transaction have on the equity of the firm? (Input the answer as positive value. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) How many shares will be outstanding after the repurchase? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) What will the price per share be after the repurchase? (Do not round intermediate calculations and round your answer to 2 decimal places)
The balance sheet for Throwing Copper, Inc., is shown here in market value terms. There are 28,000 shares of stock outstanding. Market Value Balance Sheet: Cash $ 111,000, Fixed assets 524,600, Equity $ 635,600, Total $ 635,600. The company has announced it is going to repurchase $22,400 worth of stock instead of paying a dividend of $.80. What effect will this transaction have on the equity of the firm? (Input the answer as positive value. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) How many shares will be outstanding after the repurchase? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) What will the price per share be after the repurchase? (Do not round intermediate calculations and round your answer to 2 decimal places)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The balance sheet for Throwing Copper, Inc., is shown
here in market value terms. There are 28,000 shares of
stock outstanding. Market Value Balance Sheet: Cash
$ 111,000, Fixed assets 524,600, Equity $ 635,600, Total
$ 635,600. The company has announced it is going to
repurchase $22,400 worth of stock instead of paying a
dividend of $.80. What effect will this transaction
have on the equity of the firm? (Input the answer as
positive value. Do not round intermediate calculations
and round your answer to the nearest whole number,
e.g., 32.) How many shares will be outstanding after
the repurchase? (Do not round intermediate
calculations and round your answer to the nearest
whole number, e.g., 32.) What will the price per share
be after the repurchase? (Do not round intermediate
calculations and round your answer to 2 decimal
places)
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