The Press Has Total Assets of $848,000 and Total Debt

question 53

Multiple Choice

The Press has total assets of $848,000 and total debt of $402,000 on a market value basis.There are 25,000 shares of stock outstanding.The company has announced it is going to repurchase $40,000 worth of stock in the open market.What will be the price per share after the repurchase?

• A)$36.29
• B)$17.84
• C)$38.67
• D)$39.42
• E)$39.89

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Definitions:

Mutually Exclusive Projects

Investment initiatives where committing to one option precludes the selection of an alternative.

Analytical Method

A systematic approach in research and investigation to solve problems or interpret data.

Discounted Payback

A capital budgeting method that calculates the time required to recoup the cost of an investment, considering the time value of money.

Discount Rate

This interest rate is employed within the scope of DCF to ascertain the present valuation of future cash streams.