What is the market value of Cisofts non-cash assets

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Question - Cisoft is a highly pro?table technology ?rm that currently has $7 billion in cash. The ?rm 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 2 billion shares outstanding. These shares currently trade for $5 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.

Required -

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

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

Reference no: EM133137615

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