Question
QUESTION 8 Corporation A currently has an enterprise value of $439,871,169 and $83,600,261 in excess cash. The firm has 10,413,122 shares outstanding and no debt.
QUESTION 8
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Corporation A currently has an enterprise value of $439,871,169 and $83,600,261 in excess cash. The firm has 10,413,122 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 AMCs enterprise value to either $461,348,389 or $327,218,706
What would the firm's share price be after the repurchase if its enterprise value goes down?
NOTE: Submit your answers with 4 decimals after the dot. Do not include the "$" sign
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Investing In Fixed Income Securities Understanding The Bond Market
Authors: Gary Strumeyer
1st Edition
0471465127, 9780471465126
