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The balance sheet for Tempest, Inc., is shown here in market value terms. There are 25,000 shares of stock outstanding. Market Value Balance Sheet $168,000 570,000 Equity Cash Fixed assets $738,000 Total $738,000 Total $738,000 The compay has announced it is going to repurchase $25,000 worth of stock instead of paying a dividend of $1.00. a. What effect will this transaction have on the equity of the firm? (Input the answer as positive value. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. How many shares will be outstanding after the repurchase? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c. What will the price per share be after the repurchase? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) shareholders' equity by The transaction will b. New shares outstanding Share price a. C.

The balance sheet for Tempest, Inc., is shown here in market value terms. There are 25,000 shares of stock outstanding. Market Value Balance Sheet $168,000 570,000 Equity Cash Fixed assets $738,000 Total $738,000 Total $738,000 The compay has announced it is going to repurchase $25,000 worth of stock instead of paying a dividend of $1.00. a. What effect will this transaction have on the equity of the firm? (Input the answer as positive value. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. How many shares will be outstanding after the repurchase? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c. What will the price per share be after the repurchase? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) shareholders' equity by The transaction will b. New shares outstanding Share price a. C.

FINANCIAL ACCOUNTING
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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The balance sheet for Tempest, Inc., is shown here in market value terms. There are 25,000 shares of stock outstanding. Cash Fixed assets Market Value Balance Sheet $168,000 570,000 Equity $738,000 Total $738,000 Total $738,000 The compay has announced it is going to repurchase $25,000 worth of stock instead of paying a dividend of $1.00. a. What effect will this transaction have on the equity of the firm? (Input the answer as positive value. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. How many shares will be outstanding after the repurchase? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c. What will the price per share be after the repurchase? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. The transaction will shareholders' equity by b. New shares outstanding c. Share price < Prev 6 of 8 e here to search
Transcribed Image Text:The balance sheet for Tempest, Inc., is shown here in market value terms. There are 25,000 shares of stock outstanding. Cash Fixed assets Market Value Balance Sheet $168,000 570,000 Equity $738,000 Total $738,000 Total $738,000 The compay has announced it is going to repurchase $25,000 worth of stock instead of paying a dividend of $1.00. a. What effect will this transaction have on the equity of the firm? (Input the answer as positive value. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. How many shares will be outstanding after the repurchase? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c. What will the price per share be after the repurchase? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. The transaction will shareholders' equity by b. New shares outstanding c. Share price < Prev 6 of 8 e here to search
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