Question
1). Corporation A currently has an enterprise value of $355,524,817 and $111,643,748 in excess cash. The firm has 7,564,126 shares outstanding and no debt. Suppose
1). Corporation A currently has an enterprise value of $355,524,817 and $111,643,748 in excess cash. The firm has 7,564,126 shares outstanding and no debt. Suppose the firm uses its excess cash to repurchase shares. After the share repurchase, news will come out that will change AMCs enterprise value to either $516,534,445 or $312,247,140 What is the firm's share price prior to the share repurchase? NOTE: Submit your answers with 4 decimals after the dot.
2). Company A has a market capitalization of $1,536,829,252 and 26,283,506 shares outstanding. It plans to distribute $60,429,386 through an open market repurchase. Assuming perfect capital markets:
How many shares will be repurchased?
NOTE: Submit your answers with 4 decimals after the dot.
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Technology And Finance Challenges For Financial Markets Business Strategies And Policy Makers
Authors: Morten Balling, Frank Lierman, Andy Mullineux
1st Edition
041529827X, 978-0415298278
