Question
The balance sheet for Sinking Ship Corp. is shown here in market value terms. There are 8,000 shares of stock outstanding. Market Value Balance Sheet
| The balance sheet for Sinking Ship Corp. is shown here in market value terms. There are 8,000 shares of stock outstanding. |
| Market Value Balance Sheet | ||||||
| Cash | $ | 45,600 | Equity | $ | 545,600 | |
| Fixed assets | 500,000 | |||||
| Total | $ | 545,600 | Total | $ | 545,600 | |
| Instead of a dividend of $1.90 per share, the company has announced a share repurchase of $15,200 worth of stock. |
| a. | How many shares will be outstanding after the repurchase? |
| b. | What will the price per share be after the repurchase? |
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Mathematics Of Finance
Authors: Petr Zima, Robert L. Brown
5th Edition
0070871353, 978-0070871359
