Question
The balance sheet for Sinking Ship Corp. is shown here in market value terms. There are 5,000 shares of stock outstanding. Market Value Balance Sheet
| The balance sheet for Sinking Ship Corp. is shown here in market value terms. There are 5,000 shares of stock outstanding. |
| Market Value Balance Sheet | ||||||
| Cash | $ | 44,800 | Equity | $ | 464,800 | |
| Fixed assets | 420,000 | |||||
| Total | $ | 464,800 | Total | $ | 464,800 | |
| Instead of a dividend of $1.70 per share, the company has announced a share repurchase of $8,500 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.) |
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How Finance Works
Authors: Mihir Desai
1st Edition
1633696707, 978-1633696709
