A fiRm Has a Market Value Equal to Its Book

question 312

Multiple Choice

A firm has a market value equal to its book value. Currently, the firm has excess cash of $990 and other assets of $10,010. Equity is worth $11,000. The firm has 500 shares of stock outstanding and
Net income of $2,250. The firm is going to use all of its excess cash to repurchase shares of stock.
What will the stock price per share be after the stock repurchase is completed?

• A) $22
• B) $24
• C) $26
• D) $28
• E) $30

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Definitions:

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The action of removing a vertical segment of cells and their data from a spreadsheet or table.

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A layout process that ensures columns in a document or presentation are evenly spaced.

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A function in spreadsheet or table applications that divides a single cell into multiple cells either horizontally or vertically.

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A feature in spreadsheet and word processing applications that automatically adjusts the width or height of cells, columns, or rows to fit the content.