Question
The shares of the Corp Inc. trade today for $73. The company is fairly valued at this current price. There are 39 million shares outstanding
The shares of the Corp Inc. trade today for $73. The company is fairly valued at this current price. There are 39 million shares outstanding prior to the repurchase. The company has announced that it intends to spend $265 million on an open market repurchase. Assume that the company is able to repurchase shares at a price of $75.00. Assume that the company is all equity financed.
What is the share price after the repurchase? Enter your answer to 2 decimal places. i.e. 10.022 should be answered as 10.02. Also, do not include symbols (%,$) in your answer.
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