Corporate Finance
Corporate Finance
3rd Edition
ISBN: 9780132992473
Author: Jonathan Berk, Peter DeMarzo
Publisher: Prentice Hall
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Chapter 14, Problem 7P

a.

Summary Introduction

To determine: The market value of CI non-cash assets.

Introduction:

Non-cash asset is an asset that is not easily converted into cash. If the total asset is subtracted from cash, then the remaining amount is said to be as non-cash asset.

b.

Summary Introduction

To determine: The market value of CI equity after the share repurchase and the value per share.

Introduction:

Share repurchase is an alternative method used to pay the cash to the company’s investors by way of buy back of shares. Stock repurchases is where the company purchases its own sharesthat are still outstanding.

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