A firm has a market value equal to its book value. Currently, the firm has excess cash of $1,100, other assets of $6,900,and equity of $8,000. The firm has 800 shares of stock outstanding and a net income of $1,000. The firm has decided tospend half of its excess cash on a share repurchase program. How many shares of stock will be outstanding after thestock repurchase is completed?a. 765 sharesb. 785 sharesc. 725 sharesd. 745 sharese. 705 shares

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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