Multiple Choice
A firm has a market value equal to its book value. Currently,the firm has excess cash of $800 and other assets of $5,200. Equity is worth $6,000. The firm has 600 shares of stock outstanding and net income of $700. 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) 480 shares
B) 500 shares
C) 520 shares
D) 540 shares
E) 560 shares
Correct Answer:
Verified
Correct Answer:
Verified
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