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EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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I need answer of this question solution general accounting

Transcribed Image Text:A firm has a market value equal to ns book value Currently, the firm has
excess cash of s800, other assets of $5.200, and equity of $6.000 The firm
has 600 shares of stock outstanding and a net income of $500. The firm
has decided to spend half of its excess cash on a share repurchase
program How many shares of stock we be outstanding after the stock
repurchase is completed?
a. 580 shares
b. 600 shares
c. 520 shares
d. 560 shares
e. 540 shares
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