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

question 61

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
• E)$48

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Definitions:

Observation

An act of recording the occurrence or existence of a specific entity or phenomenon.

Box and Whisker Plot

A graphical representation of data that highlights the median, quartiles, and extremes of the dataset.

Five-number Summary

A statistical summary of a data set that includes the minimum, first quartile, median, third quartile, and maximum.

30th Percentile

A value below which 30 percent of the data falls, used to indicate the lower-middle range of a data set.