Eisley's Has a Market Value Equal to Its Book Value,excess

question 25

Multiple Choice

Eisley's has a market value equal to its book value,excess cash of $528,other assets of $13,900,and equity of $9,900.The firm has 600 shares of stock outstanding and net income of $1,450.Assume the firm uses all of its excess cash for a stock repurchase.What will the price per share be after the repurchase?

• A)$16.50
• B)$17.80
• C)$18.00
• D)$15.90
• E)$17.67

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