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A firm currently has cash of $900, other assets of $4,100, and equity of $5,000. The firm has 500 shares of stock outstanding and net
A firm currently has cash of $900, other assets of $4,100, and equity of $5,000. The firm has 500 shares of stock outstanding and net income of $800. The firm has decided to spend half of its cash on a share repurchase program. How many shares of stock will be outstanding after the stock repurchase is completed? Assume there are no personal taxes and the firm repurchases shares at the current market price. Multiple Choice 475 shares 495 shares 435 shares 415 shares 455 shares
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