Assume a Firm Has a Market Value Equal to Its

question 53

Multiple Choice

Assume a firm has a market value equal to its book value,excess cash of $900,other assets of $16,500,and equity valued at $17,400.The firm has 1,200 shares of stock outstanding and net income of $15,400.If the firm spends all of its excess cash on share repurchases,how many shares will be outstanding after the repurchases are completed? (Round your answer up to the nearest whole share)

• A)1,148 shares
• B)1,135 shares
• C)1,138 shares
• D)1,164 shares
• E)1,142 shares

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