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A Firm Has $75 Million of Assets That Includes $12

Question 59

Multiple Choice

A firm has $75 million of assets that includes $12 million of cash and 25 million shares outstanding. If the firm uses $12 million of cash to repurchase shares, what is the new price per share?


A) $2.40
B) $1.50
C) $3.00
D) $6.00

Correct Answer:

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