Outstanding after the stock repurchase is completed

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Reference no: EM13882821

A firm has a market value equal to its book value. Currently, the firm has excess cash of $1,400 and other assets of $3,500. Equity is worth $4,900. The firm has 700 shares of stock outstanding and net income of $1,450. The firm has decided to spend all of its excess cash on a share repurchase program. How many shares of stock will be outstanding after the stock repurchase is completed?

500 shares

707 shares

307 shares

514 shares

507 shares

Reference no: EM13882821

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