A company with 20 million shares outstanding decides to repurchase 2 million shares at the prevailing

market price of $30 per share. At the time of the buyback, the company reports total assets of $850

million and total liabilities of $250 million. Find the company's book value per share as a result of the

buyback.

Problem 10: Assume that Wiley Chemical funds its capital spending out of its estimated full year earnings. If Wiley

uses a residual dividend policy, determine Wiley's implied dividend payout ratio