What effect will this transaction have on equity of firm

Assignment Help Financial Management

Reference no: EM131928812

The balance sheet for Throwing Copper, Inc., is shown here in market value terms. There are 27,000 shares of stock outstanding. Market Value Balance Sheet Cash $ 110,000 Fixed assets 519,100 Equity $ 629,100 Total $ 629,100 Total $ 629,100 The compay has announced it is going to repurchase $24,300 worth of stock instead of paying a dividend of $.90. What effect will this transaction have on the equity of the firm? (Input the answer as positive value. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Will shareholders’ equity by $ How many shares will be outstanding after the repurchase? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) New shares outstanding What will the price per share be after the repurchase? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Share price $.

Reference no: EM131928812

Questions Cloud

Determine share price and new number of shares outstanding : Determine the share price and new number of shares outstanding if BTC has a five-for-three stock split. Price per share $ Shares outstanding

What should be the current stock price : Fly Magazine is a publicly traded company. The appropriate discount rate for investing in this firm is 15 percent. What should be the current stock price?

What will balance sheet look like after dividends are paid : What will the balance sheet look like after the dividends are paid?

What is total rate of return on this investment : What is your total rate of return on this investment? What is your capital gain or loss yield? What is your dividend yield?

What effect will this transaction have on equity of firm : What effect will this transaction have on the equity of the firm? How many shares will be outstanding after the repurchase?

Detail the name of each company you invested : detail the name of each company you invested in. what industry is it in and why you picked it for analysis.

What will be the before-tax cost of debt : Notable Nothings plans to issue new bonds with the same yield as its existing bonds. The existing bonds have a coupon rate of interest equal to 6 percent.

Show how to express group by cube : Show how to express group by cube (a,b,c,d) using rollup; your answer should have only one group by clause.

Firm uses corporate-wide wacc in multi-divisional firm : Suppose a firm uses a corporate-wide WACC in a multi-divisional firm. Which of the following statement(s) is (are) incorrect:

User Account

All Pages