Question
The balance sheet for Levy Corp. is shown here in market value terms. There are 4,250 shares of stock outstanding. Market Value Balance Sheet Cash
The balance sheet for Levy Corp. is shown here in market value terms. There are 4,250 shares of stock outstanding.
| Market Value Balance Sheet | |||
| Cash | $ 42,400 | Equity | $ 429,400 |
| Fixed assets | 387,000 |
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| Total | $ 429,400 | Total | $ 429,400 |
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Instead of a paying a $1.50 dividend, Levy has announced it is going to repurchase $6,375 worth of stock. Ignore taxes.
What is the new value of equity?
How many shares are outstanding after the repurchase?
What is the new price per share after the repurchase?
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A Practical Guide To Quantitative Finance Interviews
Authors: Xinfeng Zhou
1st Edition
1735028800, 978-1735028804
