firm has 600 shares of stock firm currently has cash of $900, 6th assets of $5,100, hd equity of S6, outstanding and net income of $700. The firm has decided to spend half of its cash on a share repurchase program many shares of stock will be outstanding after the stock repurchase is completed? Assume there are no personal tax the firm repurchases shares at the current market price. a. 555 shares b. 595 shares c. 535 shares d. 575 shares 515 charos
firm has 600 shares of stock firm currently has cash of $900, 6th assets of $5,100, hd equity of S6, outstanding and net income of $700. The firm has decided to spend half of its cash on a share repurchase program many shares of stock will be outstanding after the stock repurchase is completed? Assume there are no personal tax the firm repurchases shares at the current market price. a. 555 shares b. 595 shares c. 535 shares d. 575 shares 515 charos
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A firm currently has cash of $900, other assets of $5,100, and equity of $6,000. The firm has 600 shares of stock
outstanding and net income of $700. The firm has decided to spend half of its cash on a share repurchase program. How
many shares of stock will be outstanding after the stock repurchase is completed? Assume there are no personal taxes and
the firm repurchases shares at the current market price.
a. 555 shares
b. 595 shares
c. 535 shares
d. 575 shares
e. 515 shares
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