The balance sheet for Levy Corp. is shown here in market value terms. There are 5,000 shares of stock outstanding. .

Market Value Balance Sheet

Cash $ 44,300 Equity $ 414,300

Fixed assets 370,000

Total 414,300 Total 414,300

Instead of a dividend of $1.60 per share, the company has announced a share repurchase of $8,000 worth of stock. How many shares will be outstanding after the repurchase? (Do not round intermediate calculations and round your answer to 2 decimal places. (e.g., 32.16))

Current stock price $ 82.86 CORRECT

Ignoring any tax effects, what will it sell for tomorrow? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

New stock price $ 82.86 INCORRECT I NEED HELP WITH THIS ANSWER

Ignoring any tax effects, what will the balance sheet look like after the dividends are paid? (Do not round intermediate calculations.)

Market Value Balance Sheet

Cash $ 34,300 CORRECT Equity $ 404,300 CORRECT

Fixed assets 370,000 CORRECT $404,300 CORRECT Total $ 404,300 CORRECT

Below is incorrect

a) Todays Stock Price = $414,300/5,000 = $82.86

Number of Shares to be purchased = $8,000/$82.86 = 96.55 or 97

Total number of shares outstanding after repurchase = 5,000 97 = 4,903 b)

New Price of Stock = ($414,300 - $8,000) / 4,903 = $82.86 I NEED HELP WITH THIS ANSWER

(Note: When a company uses its profit to repurchase shares, share prices are not impacted)

c) Cash $36,300 Equity $406,300

Fixed Assets $370,000 Total $406,300

Total $406,300 Cash = $44,300 - $8,000 = $36,300

Fixed Assets = $370,000 Total = Cash + Fixed Assets => $36,300 + $370,000 = $406,300