Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Cisoft is a highly profitable technology firm that currently has $5 billion in cash. The firm has decided to use this cash to repurchase shares
Cisoft is a highly profitable technology firm that currently has $5 billion in cash. The firm has decided to use this cash to repurchase shares from investors, and it has already announced these plans to investors. Currently, Cisoft is an all-equity firm with 5 billion shares outstanding. These shares currently trade for $ 12 per share. Cisoft has issued no other securities except for stock options given to its employees. The current market value of these options is $ 8 billion. What is the market value of Cisoft's non-cash assets? With perfect capital markets, what is the market values of Cisoft's equity after the share repurchase? What is the value per share
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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