Question
Apple Inc. is all-equity financed. The total market value of the firm currently is USD 200,000, and there are 3,000 shares outstanding. Asume that instead
Apple Inc. is all-equity financed. The total market value of the firm currently is USD 200,000, and there are 3,000 shares outstanding.
Asume that instead of paying a dividend the company plans to repurchase $20,000 worth of stock. What will be the share price before and after the repurchase?
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Fundamentals Of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
14th Edition
0135175216, 978-0135175217
