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

question 48

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)$1
• B)$2
• C)$3
• D)$4
• E)$5

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Definitions:

Insulin-Dependent Diabetes

A chronic condition where the pancreas produces little or no insulin, requiring the person to administer insulin through injections or a pump; also known as Type 1 diabetes.

Poisson Distribution

A probability distribution that models the number of times an event occurs within a fixed interval of time or space.

Incidence

The frequency or rate at which new cases of a particular condition occur in a specified population over a given period of time.

Chronic Disorder

A long-lasting condition that can be controlled but not cured, often requiring ongoing management and treatment.