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B&B is a well established company that has excess cash of $1,000. The firm has other assets of $5,500 and equity is valued at $6,500.
B&B is a well established company that has excess cash of $1,000. The firm has other assets of $5,500 and equity is valued at $6,500. The firm has 650 shares of stock outstanding and net income of $1,400. The firm has decided to spend all of its excess cash on a share repurchase program. Assume the firm's market value is equal to its book value. How many shares of stock will be outstanding after the stock repurchase is completed?
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