Firm does not pay dividend but repurchases stock

Assignment Help Financial Management

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

Questions Cloud

Describe the pollutant chosen and source of the pollutants : Describe the pollutant chosen and the source of the pollutants. Include both natural and human sources, as applicable. Is this a point-source pollutant or nonpoint-source pollutant? Explain.

Provide an overview of the effects of substance abuse : Provide an overview of the effects of substance abuse on adolescents from the following perspectives: Explain the importance of treatment, and detail the different types of treatment options available for substance addiction.

Levered value of the firm with perfect capital markets : A firm has $300 million of assets that includes $60 million of cash and 8 million shares outstanding. If the firm uses $30 million of its cash to repurchase shares, what is the new price per share? A project will give a one-time cash flow of $22,000 ..

Write a response about the given post : There are many reasons that caused world war one. But the direct reason the started world war one was the assassination of Franz Ferdinand! Germany was a main cause of starting the First World War or "Great war". Nationalism, money, colonial rival..

Firm does not pay dividend but repurchases stock : 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 firm has $300 million of assets that includes $40 million of cash and 10 million shares outstanding. If the ..

Find the angular velocity of the tube at the instant : Find the angular velocity of the tube at the instant when the rod slips out of the tube

Why were people concerned about national in the 1960s : Why were people concerned about national or world issues in the 1960s?

Identify the methods by which toxicants enter the body : Identify the methods by which toxicants enter the body. Provide a brief description and at least two examples of each. List and describe the factors that affect the distribution of a toxicant in the body.

What is the value of the interest rate tax shield : Suppose a project financed via an issue of debt requires five annual interest payments of $12 million each year. If the tax rate is 35% and the cost of debt is 5%, what is the value of the interest rate tax shield? A firm requires an investment of $3..

User Account

All Pages