Firm does not pay dividend but repurchases stock

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Reference no: EM131346639

1. Suppose a firm does not pay a dividend but repurchases stock using $28 million of cash, the market value of the firm decreases by ________.

A) 0

B) -$28 million

C) $28 million

D) cannot say for sure

2. A firm has $300 million of assets that includes $40 million of cash and 10 million shares outstanding. If the firm uses $30 million of its cash to repurchase shares, what is the new price per share?

A) $24.00

B) $42.00

C) $30.00

D) $36.00

Reference no: EM131346639

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