Blasco's Has a Market Value Equal to Its Book Value

question 49

Multiple Choice

Blasco's has a market value equal to its book value. Currently, the firm has excess cash of $1,332, other assets of $11,674, and equity of $7,200. The firm has 600 shares of stock outstanding and net income of $838. Blasco's has decided to spend one-third of its excess cash on a share repurchase program. How many shares of stock will be outstanding after the stock repurchase is completed?

• A)537 shares
• B)550 shares
• C)563 shares
• D)578 shares
• E)584 shares

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Definitions:

Examination for Discovery

A pre-trial process where parties to a legal case are questioned under oath by the opposing party's lawyer to gather information about the case.

Stare Decisis

A legal doctrine stating that courts should follow precedents established in previous cases when making their decisions, to ensure consistency and predictability in the law.

Default Judgment

A binding judgment in favor of either party based on some failure to take action by the other party, usually the defendant.

Mandamus

A court order directing that a specific act be performed.