Question
Company ABC has 1000 shares outstanding. It earns $1492 surplus cash per year and expects to use all of it to repurchase its shares in
Company ABC has 1000 shares outstanding. It earns $1492 surplus cash per year and expects to use all of it to repurchase its shares in the open market instead of paying dividends . Calculate the number of shares outstanding at the end of year 1, after the first share repurchase. The required rate of return is 5%.
Show your work (you can type the solution in the textbox, below the answer field).
Note: Write the final answer in the Answer field. Include at least three digits after the decimal point. Do NOT enter any symbols in the answer field, like =, % or $.
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