Ow many shares of stock will be outstanding after the stock

Assignment Help Finance Basics
Reference no: EM13263987

A firm has a market value equal to its book value. Currently, the firm has excess cash of $3,000 and other assets of $6,000. Equity is worth $9,000. The firm has 900 shares of stock outstanding and net income of $1,650. The firm has decided to spend all of its excess cash on a share repurchase program. How many shares of stock will be outstanding after the stock repurchase is completed?

A. 910 shares
B. 620 shares
C. 310 shares
D. 600 shares
E. 610 shares

 

Reference no: EM13263987

Questions Cloud

What will the market price per share be after the split : The Peanut Shack has 6,5000 shares of stock outstanding with a par value of $1 per share. The current market value of the firm is $145,600. The company just announced a 3-for-2 stock split. What will the market price per share be after the split?
What is the change in value of your portfolio : You own 100 shares of Amazon stock (AMZN) and are concerned that the price will go down. You do not want to sell because you have unrecognized capital gains and are in a high tax bracket.
What are the call options intrinsic and time values : A call option with a strike price of $47 on a stock selling at $55 costs $11.50.
What is the present value of your interest : A family trust will convey property to you in 15 years. If the property is expected to be worth 50,000 when you receive it, what is the present value of your interest, discounted at 10 percent annually?
Ow many shares of stock will be outstanding after the stock : The firm has decided to spend all of its excess cash on a share repurchase program. How many shares of stock will be outstanding after the stock repurchase is completed?
How many dollars of revenue must the company generate : Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $180,800, how many dollars of revenue must the company generate in order to reach the break-even point?
What will be the ex-dividend stock price under new growth : The management wants the company to grow. Rather than pay out all of the firm's earnings as a dividend this year (t = 0), the management wants to plow back 60 percent of the earnings into the business.
What is the present value of such a perpetuity : What is the value today of a 10,000 payment made in perpetuity assuming a 8% discount rate?
What is the approximate market value of the bond : A 15-year zero-coupon bond was issued with a $1,000 par value to yield 8%. What is the approximate market value of the bond?

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculation of net present value of a machine with salvage

Calculation of Net present value of a machine with salvage value and what is the net cost of the machine for capital budgeting purposes

  Calculating break-even points

Three corporations were looking to start a new brewpub near Sacramento, California called Roseville Brewing Corporation.

  Options to be as profitable as an investment in the stock

The price of a stock is $36 and the price of a three-month call option on the stock with a $36 strike is $3.60

  Calculating time value of money

Your annual salary is $100,000. Every year for the next 30 years you plan to save 10 percent of your salary and invest-How much will you have in your account at the end of 30 years if your salary grows at 4 percent per year?

  What is the expected rate of return on a stock with a beta

The risk-free rate of return is 4.6 percent and the market risk premium is 12 percent. What is the expected rate of return on a stock with a beta of 1.2?

  Compute the maturity risk premium

Key's Corporation's five year bonds yield 6.50% and five year T-bonds yield 4.40%. The real risk free rate is 2.5%, the default risk premium for Key's bond is DRP is 0.40%,

  Review insurance coverage

The Hammons, Tim (35), Anna (32), children Mary (13) and Mark (11), consider themselves among the typical up and rising middle class. Overall, by today's standards, they have achieved a fair level of success:

  Discuss the ability of central banks to manage

Further discuss the ability of central banks to manage domestic economic problems while maintaining a pegged exchange rate?

  Determine the effective rate on bank loan

Bosworth Petroleum requires $500,000 to take a cash discount of 2/10 net 70. A banker will land money for sixty days at an interest cost of $8,100.

  What should the exchange rate be four years from now

Currently, you can exchange $100 for €97.25. The inflation rate in Euroland is expected to be 3.8 percent as compared to 2.1 percent in the U.S. Assuming that relative purchasing power parity exists, what should the exchange rate be four years fro..

  How will this likely affect its wacc

If the chosen firm grows at its internal growth rate, increasing assets only with its retained earnings, how will this likely affect its WACC? Show calculations.

  Calculate the effective interest rate

the fact that she is providing no collateral, the bank is going to charge her a fee of 2.0% of her loan amount as well as take out the interest upfront. The bank is offering her 16% APR for six months.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd