How many shares will remain after the repurchase

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A firm has 10 million shares outstanding with a market price of $20 per share. The firm has $25 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.

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Problem 1: What is the firm's value of operations, and how many shares will remain after the repurchase?

Reference no: EM132880953

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