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

question 81

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 1,200 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)937 shares
• B)1,050 shares
• C)1,126 shares
• D)1,578 shares
• E)1,584 shares

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Definitions:

Siccar Point

A location in Scotland famous for its unconformity, visible as an angular discordance between layers of sedimentary rock, demonstrating deep geological time and processes.

Unconformity

A surface of contact between two groups of unconformable strata, indicating a period of erosion or non-deposition in the geological record.

Erosion Surface

A land surface shaped and leveled by the natural removal of soil and rock, usually by water, wind, or ice.

Fragments

Small or broken pieces of something larger, often resulting from the physical breaking or destruction of an object or substance.