What is the new value of equity

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Reference no: EM132956702

The balance sheet for Levy Corp. is shown here in market value terms. There are 4,250 shares of stock outstanding.

Market Value Balance Sheet

Cash

$ 42,400

Equity

$ 429,400

Fixed assets

387,000

Total

$ 429,400

Total

$ 429,400

Instead of a paying a $1.50 dividend, Levy has announced it is going to repurchase $6,375 worth of stock. Ignore taxes.

1.What is the new value of equity?

2. How many shares are outstanding after the repurchase?

3. What is the new price per share after the repurchase?

Reference no: EM132956702

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