Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

XYZ Corp. currently has $25 million in excess cash that it plans on returning to its shareholders through a share repurchase. XYZ's current share price

image text in transcribed

XYZ Corp. currently has $25 million in excess cash that it plans on returning to its shareholders through a share repurchase. XYZ's current share price is $21 and it currently has 23.3 million shares outstanding. In addition, the market value of the company's debt is $9 million. Assuming perfect markets, how many shares will XYZ be able to repurchase with the excess cash? Express your answer in millions and round your answer to two decimals

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management Theory And Practice

Authors: Eugene F. Brigham, Michael C. Ehrhardt

10th Edition

0030329922, 9780030329920

More Books

Students also viewed these Finance questions