Use the information to the right to answer the questions below.

Q$13$ What is the firm's $($total$)$ value of equity?

Q$14$ What is the firm's stock price?

Suppose the firm distributes all excess cash as a stock repurchase.

Suppose this is a perfect capital market with no taxes, trading frictions, etc.

All shares are repurchased at fair value.

Q$15$ How many shares will be repurchased with the excess cash?

Q$16$ What is the new total value of equity after the repurchase?

Q$17$ What is the new stock price after the repurchase?

Q$18$ The change in shares during a repurchase has a

effect on stock price, and the change in cash has a

effect on stock price.