The simplified balance sheet for MGT Inc. is shown below in market value terms. There are 126,000 shares of stock outstanding. The firm has just announced that it will repurchase $126,560 worth of stock. What will be the market share price of the firm after the repurchase is completed? $20

The simplified balance sheet for MGT Inc. is shown below in market value terms. There are 126,000 shares of stock outstanding. The firm has just announced that it will repurchase $126,560 worth of stock. What will be the market share price of the firm after the repurchase is completed? $20

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Chapter12: Investing In Stocks And Bonds

Section: Chapter Questions

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Question

13.
The simplified balance sheet for MGT Inc. is shown below in market value terms. There
are 126,000 shares of stock outstanding. The firm has just announced that it will
repurchase $126,560 worth of stock. What will be the market share price of the firm after
the repurchase is completed?
$20
Cash
Fixed
Assets
Total
MGT INC.
Market Value Balance Sheet
As at December 31, 2015
$630,000
$1,890,000
$2,520,000
Debt
Equity
Total
$0
$2,520,000
$2,520,000

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