The simplified balance sheet for MGT Inc. is shown below in market value terms. There are 126,000 shares of stock outstanding. The firm has just announced that it will repurchase $126,560 worth of stock. What will be the market share price of the firm after the repurchase is completed? $20
The simplified balance sheet for MGT Inc. is shown below in market value terms. There are 126,000 shares of stock outstanding. The firm has just announced that it will repurchase $126,560 worth of stock. What will be the market share price of the firm after the repurchase is completed? $20
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
![13.
The simplified balance sheet for MGT Inc. is shown below in market value terms. There
are 126,000 shares of stock outstanding. The firm has just announced that it will
repurchase $126,560 worth of stock. What will be the market share price of the firm after
the repurchase is completed?
$20
Cash
Fixed
Assets
Total
MGT INC.
Market Value Balance Sheet
As at December 31, 2015
$630,000
$1,890,000
$2,520,000
Debt
Equity
Total
$0
$2,520,000
$2,520,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd2f120de-e6cd-4c33-8934-b6ba4db9c4aa%2Fe9752e0a-01db-4627-a217-265122879f20%2Fzkkwhhp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:13.
The simplified balance sheet for MGT Inc. is shown below in market value terms. There
are 126,000 shares of stock outstanding. The firm has just announced that it will
repurchase $126,560 worth of stock. What will be the market share price of the firm after
the repurchase is completed?
$20
Cash
Fixed
Assets
Total
MGT INC.
Market Value Balance Sheet
As at December 31, 2015
$630,000
$1,890,000
$2,520,000
Debt
Equity
Total
$0
$2,520,000
$2,520,000
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Essentials Of Investments](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781260013924/9781260013924_smallCoverImage.jpg)
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
![FUNDAMENTALS OF CORPORATE FINANCE](https://www.bartleby.com/isbn_cover_images/9781260013962/9781260013962_smallCoverImage.gif)
![Financial Management: Theory & Practice](https://www.bartleby.com/isbn_cover_images/9781337909730/9781337909730_smallCoverImage.gif)
![Essentials Of Investments](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781260013924/9781260013924_smallCoverImage.jpg)
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
![FUNDAMENTALS OF CORPORATE FINANCE](https://www.bartleby.com/isbn_cover_images/9781260013962/9781260013962_smallCoverImage.gif)
![Financial Management: Theory & Practice](https://www.bartleby.com/isbn_cover_images/9781337909730/9781337909730_smallCoverImage.gif)
![Foundations Of Finance](https://www.bartleby.com/isbn_cover_images/9780134897264/9780134897264_smallCoverImage.gif)
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
![Fundamentals of Financial Management (MindTap Cou…](https://www.bartleby.com/isbn_cover_images/9781337395250/9781337395250_smallCoverImage.gif)
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
![Corporate Finance (The Mcgraw-hill/Irwin Series i…](https://www.bartleby.com/isbn_cover_images/9780077861759/9780077861759_smallCoverImage.gif)
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education