A Firm Has $400 Million of Assets That Includes $50

question 86

Multiple Choice

A firm has $400 million of assets that includes $50 million of cash and 10 million shares outstanding.If the firm uses $40 million of its cash to repurchase shares,what is the new price per share?

• A)$38
• B)$40
• C)$42
• D)$44

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Definitions:

Roger Williams

A Puritan minister in the early Colonial American period, founder of Rhode Island, and an early advocate for religious freedom and the separation of church and state.

Economic Equality

refers to a state of affairs in which all individuals within a society have similar economic opportunities, resources, and wealth.

Chesapeake Colonies

Refers to the English colonies in North America that were located around the Chesapeake Bay, notably Virginia and Maryland, in the 17th century.

New England

A region in the northeastern United States comprising six states: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont, historically significant for its early settlement by Pilgrims.