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:

Performance Obligation

A promise in a contract to transfer a good or service to a customer, which is a fundamental concept in revenue recognition.

Non-distinct

Describes goods, services, or attributes that are not clearly separate or distinguishable from each other.

Separately Identifiable

A condition where an asset or component can be distinguished and divided from the whole, based on its unique characteristics and contributions to the operation.