Question
The balance sheet for Sinking Ship Corp. is shown here in market value terms. There are 10,000 shares of stock outstanding. Market Value Balance Sheet
| The balance sheet for Sinking Ship Corp. is shown here in market value terms. There are 10,000 shares of stock outstanding. |
| Market Value Balance Sheet | ||||||
| Cash | $ | 45,400 | Equity | $ | 525,400 | |
| Fixed assets | 480,000 | |||||
| Total | $ | 525,400 | Total | $ | 525,400 | |
| Instead of a dividend of $1.70 per share, the company has announced a share repurchase of $17,000 worth of stock. |
| a. | 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.) |
| b. | What will the price per share be after the repurchase? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Corporate Financial Management
Authors: Julian Ralph Franks, Harry H. Scholefield
2nd Edition
0566020548, 978-0566020544
