The balance sheet for Pie Crust, Inc., is shown here in market value terms. There are 27,000 shares of stock outstanding.

Market Value Balance Sheet

Cash	$117,000
Fixed assets	489,960		Equity	$606,960
Total	$606,960		Total	$606,960

In lieu of a dividend of $1.40, the company has announced it is going to repurchase $37,800 worth of stock instead of paying a dividend.

Requirement 1:

What effect will this transaction have on the equity of the firm? (Do not round intermediate calculations.Input the amount as positive value.)

Will (Click to select)increasereduce shareholders equity by $

Requirement 2:

How many shares will be outstanding after the repurchase? (Do not round intermediate calculations.Round your answer to the nearest whole number (e.g., 32).)

New shares outstanding

Requirement 3:

What will the price per share be after the repurchase? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Share price

$

Requirement 4:

Is the share repurchase effectively the same as a cash dividend?

(Click to select)NoYes