How many shares will remain after the repurchase

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Reference no: EM131533045

Stock Repurchase

A firm has 5 million shares outstanding with a market price of $20 per share. The firm has $35 million in extra cash (short-term investments) that it plans to use in a stock repurchase; the firm has no other financial investments or any debt. What is the firm's value of operations after the repurchase? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answer to two decimal places.

$ million

How many shares will remain after the repurchase? Round your answer to the nearest whole number.

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