Question
A firm has 8 million shares outstanding with a market price of $40 per share. The firm has $30 million in extra cash (short-term investments)
A firm has 8 million shares outstanding with a market price of $40 per share. The firm has $30 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, and how many shares will remain after the repurchase (in millions)?
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Principles Of Finance
Authors: Besley, Scott Besley, Eugene F Brigham, Brigham
4th Edition
0324655886, 9780324655889
