A Firm Has $200 Million of Assets That Includes $50

question 46

Multiple Choice

A firm has $200 million of assets that includes $50 million of cash and 8 million shares outstanding.If the firm uses $20 million of its cash to repurchase shares,what is the new price per share?

• A)$25
• B)$27
• C)$30
• D)$32
• E)$35

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Definitions:

Manufacturing Firms

Companies involved in the transformation of raw materials, components, or parts into finished goods that meet a consumer's demand or specifications.

Unionized Workers

Employees who are members of a union, a group that negotiates with employers for better wages, benefits, and working conditions.

Minimum Wage

Minimum wage is the lowest legal remuneration that employers are allowed to pay their workers, established by government laws.

Quantity Demanded

The total amount of a good or service that consumers are willing to buy at a given price level in a given period.