Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on May 20, 2024

Corporation A currently has an enterprise value of $377,983,450 and $94,553,295 in excess cash. The firm has 11,142,955 shares outstanding and no debt. Suppose the

Corporation A currently has an enterprise value of $377,983,450 and $94,553,295 in excess cash. The firm has 11,142,955 shares outstanding and no debt. Suppose the firm uses its excess cash to repurchase shares. After the share repurchase, news will come out that will change AMC's enterprise value to either $546,537,437 or $325,258,187

What would the firm's share price be after the repurchase if its enterprise value goes up?

NOTE:Submit your answers with 4decimals after the dot. Do not include the "$" sign

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

Recommended Textbook for

Financial Management For Decision Makers

Authors: Peter Atrill, Paul Hurley

2nd Canadian Edition

138011605, 978-0138011604

Students also viewed these Finance questions

Question

★★★★★

AMC Corporation currently has an enterprise value of $400 million and $100 million in excess cash. The firm has 10 million shares outstanding and no debt. Suppose AMC uses its excess cash to...

Answered: 1 week ago

Question

★★★★★

Please see attachment for question. Please use the attached spreadsheet and follow instructions on the attachment. If you can't use excel do not attempt the problem. Thanks. Problem 14-5 Suppose...

Answered: 1 week ago

Question

★★★★★

17-29, please see attached. I need the formulas and associated answers. Thank you. Problem 17-29 AMC Corporation currently has an enterprise value of $400 million and $100 million in exc million...

Answered: 1 week ago

Question

★★★★★

Each student will interview a manager or an employee (who might be a family member, a friend, or an acquaintance) to determine the extent to which the issues raised in the case are represented in his...

Answered: 1 week ago

Question

★★★★★

Colah Company purchased $1 million of Jackson, Inc., 5% bonds at par on July 1, 2018, with interest paid semiannually. Colah determined that it should account for the bonds as an available-for-sale...

Answered: 1 week ago

Question

★★★★★

Two glass bulbs are connected by a 0.2-m-long glass tube with a 0.001-m inner diameter. Initially, bulb 1 contains pure argon and bulb 2 contains pure xenon. Bulb 1 has a volume of 1 L. The absolute...

Answered: 1 week ago

Question

★★★★★

=+21. Walmart revenue. Each week about 100 million customersnearly one-third of the U.S. populationvisit one of Walmarts U.S. stores. How does Walmarts revenue relate to the state of the economy in...

Answered: 1 week ago

Question

★★★★★

The balance sheet of Rybowiaks Building Supplies on June 30, Year 12, appears nearby. RYBOWIAKS BUILDING SUPPLIES Balance Sheet June 30, Year 12 Assets Cash . . . . . . . . . . . . . . . . . . . . ....

Answered: 1 week ago

Question

★★★★★

Give me an example of an entity - relationship diagram

Answered: 1 week ago

Question

★★★★★

The following questions refer to these phase diagrams shown here: Temperature C 2200 2000 1800 1600 1400 1200 1000 0 (HD HN 40 60 Composition (wt% 0 ' T 18 ' V Temperature (C) 2800 2400 2000 MgO (56)...

Answered: 1 week ago

Question

★★★★★

If the president vetoes tax legislation, Congress: Multiple Choice cannot override the president's veto. can override the president's veto with a 50 percent positive vote in the House and Senate. can...

Answered: 1 week ago

Question

★★★★★

When conducting a review on any business, the first thing that needs to be completed is a SWOT Analysis (strengths, weaknesses, opportunities, and threats). This analysis helps a business know where...

Answered: 1 week ago

Question

★★★★★

. How did you accomplish your goals for this experience? 2. What did you learn about yourself through this experience? 3. Were your expectations for this experience realistic? Why or why not? 4. What...

Answered: 1 week ago

Question

★★★★★

Case study Towards the end of the 1990s the iconic British garment company Burberry was in trouble. For the financial year ending 31 March 1998, profits plunged from 62 million to 25 million. The...

Answered: 1 week ago

Question

★★★★★

Tiffany gives her friend Jeff the right to walk his black Labrador dog across her property to the beach every day, what kind of property rightdoes Jeff acquire?

Answered: 1 week ago

Question

★★★★★

Forecasted and actual sales are shown below. Week Forecast Actual 1234 1 720 749 2 810 915 3 640 762 4 660 706 Calculate the mean squared error (MSE). Note: Round your answer to 2 decimal places....

Answered: 1 week ago

Question

★★★★★

You purchased a machine for $1 11 milion tree years ago and have been applying straight line depreciation to zero for a seven-year life Your tax rate is 40% ifyou sell the machine today (after three...

Answered: 1 week ago

Question

★★★★★

Government is advised to tax goods whose demand curves are inelastic if the goal is to raise tax revenues. If the goal is to discourage consumption, then it ought to tax goods whose demand curves are...

Answered: 1 week ago

Question

★★★★★

8-19. What role should job descriptions play in training at Apex?

Answered: 1 week ago

Question

★★★★★

8-20. Explain in detail what you would do to improve the training process at Apex. Make sure to provide specific suggestions, please.

Answered: 1 week ago

Question

★★★★★

8-26. Based on what you read in this Dessler Human Resource Management chapter and what you may access via the Web, develop a detailed training program for one of these hotel positions: security...

Answered: 1 week ago

Previous Question Next Question