The Fridge Company has total assets of $925,000 and total debt of $322,000 on a market value basis. There are 10,000 shares of stock outstanding. Total net income add up to $100,000 for the fiscal year.

The company has announced it is going to repurchase $80,000 worth of stock in the open market, paid for with debt.

What should the stock price be before the share repurchase?

How many shares will be repurchased?

What will the price per share be after the repurchase?

How many shares will be outstanding if the firm declares a 2-for-9 reverse stock split (and no stock repurchase)