Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Governess Geological had a fairly stable, yet satisfactory 2 0 2 2 . During the year, they had revenues of $ 2 2 4 million
Governess Geological had a fairly stable, yet satisfactory During the year, they had revenues of $ million with operating costs of only $ million. Given that management holds the view that this success will continue in the future, they decided to repurchases some shares during the year. This decision to repurchase shares was also driven by the firm's lack of debt and therefore, lack of interest payments now and in the future and the fact that they do not pay dividends.
Given the stability of their operations, the firm's net fixed assets decreased by the same amount as their depreciation expense. Their current assets increased by $ while their current liabilities did not change.
If the firm's tax rate was percent and their depreciation expense was percent of revenues, how much did Governess spend repurchasing shares? Hint: this will be the magnitude of the decrease in Contributed Equity
Enter your answer in millions of dollars, rounded to the nearest $ million. So for $ enter
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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