Examlex

Solved

A fiRm Has a Market Value Equal to Its Book

question 53

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 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 will be outstanding after the share repurchase is completed?


Definitions:

Farming And Hunting

Agricultural practices combined with the pursuit of wild animals for food.

Rhyton

A drinking vessel.

Conical Pouring Vessel

A container with a conical shape designed for pouring liquids, often found in ancient or scientific contexts.

Economic Growth

Refers to an increase in a country's output of goods and services over time, often measured as a percentage increase in real GDP.

Related Questions