How many shares will remain after the repurchase

Assignment Help Financial Management

Reference no: EM131446868

A firm has 10 million shares outstanding with a market price of $20 per share. The firm has $25 million in extra cash (short-term investments) that it plans to use in a stock repurchase; the firm has no other financial investments or any debt. What is the firm's value of operations, and how many shares will remain after the repurchase?

Reference no: EM131446868

Questions Cloud

Define the indirect approach : When your audience is likely to have a skeptical or even hostile reaction to your main idea, you should generally use a. The indirect approach b. The direct approach c. The open-ended approach d. The closed approach.

Dividend payout ratio : The Wei Corporation expects next year's net income to be $15 million. The firm's debt ratio is currently 40%. Wei has $12 million of profitable investment opportunities, and it wishes to maintain its existing debt ratio. According to the residual dis..

Low-liquidity plan for the assets : Assume that Atlas Sporting Goods Inc. has $860,000 in assets. If it goes with a low-liquidity plan for the assets, it can earn a return of 17 percent, but with a high-liquidity plan the return will be 14 percent. Compute the anticipated return after ..

Write a brief email message to your instructor : A day after sending an email to all 1,800 employees in your company regarding income tax implications of the company's retirement plan, you discover that one of the sources you relied on for your information plagiarized from other sources.

How many shares will remain after the repurchase : A firm has 10 million shares outstanding with a market price of $20 per share. The firm has $25 million in extra cash (short-term investments) that it plans to use in a stock repurchase; the firm has no other financial investments or any debt. What i..

Management is considering stock split : JPix management is considering a stock split. JPix currently sells for $120 per share and a 3-for-2 stock split is contemplated. What will be the company's stock price following the stock split, assuming that the split has no effect on the total mark..

How do you explain their treatment at the hands of whites : Identify fully your sources, the film, your text, and the primary document, providing their description, dates, names, producers, publishers, places, etc.Describe the effects that the founding of this nation had on the various eastern and southern..

Public finance and cost benefit : What happens to the MDE (the Minimum detectable effect) if we increase the variance of the error term? What does that say about the value of including control variables in our regression model?

Describe an arbitrage opportunity : The price of oil is currently $100 per barrel. The contract size is one barrel. The forward price for delivery in one year is $130. You can borrow money at 7% per annum with annual compounding. Assume the cost of storing one barrel of oil is nothing,..

User Account

All Pages