How many shares of stock will be outstanding after the stock

Assignment Help Financial Management

Reference no: EM131460989

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 net income of $1,000. The firm has decided to spend half of its excess cash on a share repurchase program. How many shares of stock will be outstanding after the stock repurchase is completed?

765 shares

785 shares

725 shares

745 shares

705 shares

Reference no: EM131460989

Questions Cloud

Proportion of subjects in the experimental group : Determine whether the proportion of subjects in the experimental group who contracted the disease is less than the proportion.

Debt increases the possibility of financial distress : Unpaid common stock dividends can force a firm into liquidation. Debt increases the possibility of financial distress.

Discuss whether kit is a resident of australia : HI6028 Taxation, Theory, Practice & Law Assignment. Discuss whether Kit is a resident of Australia and how his salary and investment income would be taxed

Short-run effect on funds requirements : Suppose a firm makes the following policy changes. Think in terms of the immediate short-run effect on funds requirements.

How many shares of stock will be outstanding after the stock : A firm has a market value equal to its book value. How many shares of stock will be outstanding after the stock repurchase is completed?

How would errors in these estimates impact the WACC : Calculating the WACC for a firm requires a number of inputs, many of which are estimates. How would errors in these estimates impact the WACC?

What is the market rate of return on this stock : The common stock of Auto Deliveries sells for $25.96 a share. What is the market rate of return on this stock?

About the APR of the loan : You have arranged for a loan on your new car that will require the first payment today. what is the APR of the loan?

Total return of tips in percentage : Consider a 4.80 percent TIPS with an issue CPI reference of 201.2. total return of tips in percentage? and total return of tips in dollars?

User Account

All Pages