5 2.27 The balance sheet for Tempest, Inc., is shown here in market value terms. There are 28,000 shares of stock outstanding. Market Value Balance Sheet Cash $ 130,000 Fixed assets 494,960 Equity $624,960 points Total $624,960 Total eBook $624,960 Hint Print The compay has announced it is going to repurchase $42,000 worth of stock instead of paying a dividend of $1.50 a. 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.) b. 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.) c. What will the price per share be after the repurchase? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) References reduce shareholders equity by a The transaction will 1. New shares outstanding Share price