Question
The balance sheet for Levy Corp. is shown here in market value terms. There are 9,000 shares of stock outstanding. Market Value Balance Sheet Cash
The balance sheet for Levy Corp. is shown here in market value terms. There are 9,000 shares of stock outstanding.
| Market Value Balance Sheet | ||||||
| Cash | 44,600 | |||||
| Fixed assets | 400,000 | Equity | 444,600 | |||
| Total | $ | 444,600 | Total | $ | 444,600 | |
Instead of a dividend of $1.50 per share, the Levy has announced it will repurchase $13,500 worth of stock.
How many shares will be outstanding after the repurchase?
What will the price per share be after the repurchase?
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Understanding Financial Risk Management
Authors: Angelo Corelli
1st Edition
0415746183, 978-0415746182
