Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A firm has 10 million shares outstanding with a market price of $15 per share. The firm has $35 million in extra cash (short-term investments)
A firm has 10 million shares outstanding with a market price of $15 per share. The firm has $35 million in extra cash (short-term investments) that it plans to use in a stock repurchase; the firm has no other financial investments or any debt. What is the firm's value of operations after the repurchase? Enter your answer in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answer to two decimal places. $3 million How many shares will remain after the repurchase? Round your answer to the nearest whole number. shares
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started