JM Case Inc

question 17

Multiple Choice

JM Case Inc.has a market value of $5 million with 500,000 shares outstanding.The book value of its equity is $1,750,000.If the company repurchases 20 percent of its shares in the stock market and there are no taxes or transactions costs and all else remains the same,what should the market value of the firm be after the repurchase?

• A) $1,000,000
• B) $1,750,000
• C) $3,250,000
• D) $4,000,000
• E) $5,000,000
• F) None of the above.

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Definitions:

Oxygenated Blood

Blood that has been oxygenated by the lungs and is being transported by the arteries to the tissues throughout the body.

Deoxygenated Blood

Blood that has released its oxygen load to the tissues and contains a higher concentration of carbon dioxide, returning to the heart and then to the lungs for re-oxygenation.

Heart Valves

Structures within the heart that open and close to control the flow of blood through the heart's chambers and into the arteries.

Aorta

Originating from the heart's left ventricle and stretching to the abdomen, it is the body's biggest artery, responsible for delivering oxygen-rich blood to the circulatory system.