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XYZ Corp. currently has $20 million in excess cash that it plans on returning to its shareholders through a share repurchase. XYZ's current share price
XYZ Corp. currently has $20 million in excess cash that it plans on returning to its shareholders through a share repurchase. XYZ's current share price is $19.9 and it currently has 27.6 million shares outstanding. In addition, the market value of the company's debt is $17 million. Assuming perfect markets, what will XYZ's share price be after it uses the excess cash to repurchase shares?
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First lets calculate the market value of the company before the share repurchase Market value of equ...
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
9th Edition
1337614689, 1337614688, 9781337668262, 978-1337614689
