Financial accounting question XYZ Corp has a market value equal to its book value. Thefirm currently has excess cash of $2,400, other assets of$9,600, and total equity of $12,000. The firm has 1,000shares of stock outstanding and a net income of $1,500. Ifthe firm decides to use 40% of its excess cash for a sharerepurchase program, how many shares will remainoutstanding after the repurchase is completed?a. 904 sharesb. 924 sharesc. 944 sharesd. 964 sharese. 984 shares

Step 1: Definition: Share Repurchase Program: A share repurchase program is when a company buys back…

Answered: XYZ Corp has a market value equal to…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 12P

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