Market value of cisoft non-cash assets

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Cisoft is a highly profitable technology firm that currently has $5 billion in cash. The firm has decided to use this cash to repurchase shares from investors, and it has already announced these plans to investors. Currently, Cisoft is an all-equity firm with 5 billion shares outstanding. These shares currently trade for $12 per share. Cisoft has issued no other securities except for stock options given to its employees. The current market value of these options is $8 billion.

What is the market value of Cisoft's non-cash assets?

With perfect capital markets, what is the market value of Cisoft's equity after the share repurchase? What is the value per share?

Reference no: EM133067771

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