Outstanding after the stock repurchase is completed

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Reference no: EM131818320

1. Franco's Fancy Factories, Inc. has 48,000,000 shares of common stock authorized, but only has 12,000,000 share outstanding. Each share has a par value of $1.00. The company has $72,000,000 in additional paid-in-capital and retained earnings of $60,000,000. What is the total stockholder equity for this company?

a. $ 48,000,000

b. $ 72,000,000

c. $132,000,000

d. $144,000,000

e. $120,000,000

2. A firm has a market value equal to its book value. Currently, the firm has excess cash of $800, other assets of $3,200, and equity of $4,000. The firm has 400 shares of stock outstanding and net income of $500. 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?

380 shares

400 shares

340 shares

320 shares

360 shares

Reference no: EM131818320

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