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Alfredo Ltd of Ottawa Firm Has a Market Value Equal

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Alfredo Ltd of Ottawa firm has a market value equal to its book value. Currently, the firm has excess cash of $1,360 and other assets of $6,640. Equity is worth $8,000. The firm has 500 shares of stock outstanding and net income of $600. 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?


Definitions:

Tax Incentives

Financial benefits offered by governments to encourage certain activities or investments, such as reducing taxes for eco-friendly practices.

Total Cost

The aggregate expenditure involved in creating a product or service, including all variable and fixed costs.

Construction Cost

The total expenses incurred during the building of a structure, including materials, labor, and other related costs.

Operating Cost

Expenses associated with the day-to-day running of a business, excluding the cost of goods sold.

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