The Press Has Total Assets of $848,000 and Total Debt

question 53

Multiple Choice

The Press has total assets of $848,000 and total debt of $402,000 on a market value basis.There are 25,000 shares of stock outstanding.The company has announced it is going to repurchase $40,000 worth of stock in the open market.What will be the price per share after the repurchase?

• A)$36.29
• B)$17.84
• C)$38.67
• D)$39.42
• E)$39.89

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Definitions:

Price Ranges

The spread between the lowest and highest price at which a good or service is sold in a market.

Price Elasticity

A calculation that shows the impact of price changes on the quantity of a good that is demanded.

Price Increase

A rise in the cost of goods or services, affecting the purchasing power of consumers.

Widgets

A generic term often used to refer to any hypothetical manufactured good or product.