How many shares can the company buyback

Assignment Help Financial Management

Reference no: EM132031267

Assume that WyoOne Corp. recently moved to its optimal capital structure by issuing $4,000mn additional debt and this move resulted in an increase of $2,500mn in firm value. There are 800mn shares outstanding and the current stock price is $17.5. WyoOne corp. intends to buy back shares with the proceeds from debt. Use this information to answer the following questions.

2) If WyoOne Corp. announces a share buyback program at $22.5 per share, how many shares (in millions) can the company buyback?

3) If WyoOne Corp. announces a share buyback program at $22.5, how many shares (in millions) will be remaining after the buyback?

Reference no: EM132031267

Questions Cloud

Company implement to reduce this percentage : With nearly half of the workforce admitting to some form of unethical practice, what measures can a company implement to reduce this percentage?

Prepare the journal entries for given months : The pearl company issued 210000 of 9% bonds on January 1 2017. The bonds are due January 1 2022 with interest payable each July 1 and January 1.

Current trend toward nationalism : What marketing approach should multi-national companies take in light of the this current trend toward nationalism?

Activity centers and resources in low income neighborhoods : My selected topic is "There needs to be more activity centers and resources in low income neighborhoods"

How many shares can the company buyback : If WyoOne Corp. announces a share buyback program at $22.5 per share, how many shares (in millions) can the company buyback?

Differences affect how individuals view conflict : How would personality differences affect how individuals view conflict, attempt to resolve conflict or respond to conflict?

Calculate the amount of the quarterly repayment : Prepare a spreadsheet to show a repayment schedule for a loan of $100,000, Calculate the amount of the quarterly repayment.

Discuss with reference to appropriate literature sources : According to Dasgupta and Gupta "The increasing turbulence in the external business environment has focused attention on the resources and organizational

What is the amount of net fixed assets : Pearce's has a long-term debt ratio of .45 and a current ratio of 1.25. Current liabilities are $875, sales are $5, 780, profit margin is 9.5%.

User Account

All Pages