A Firm Has $75 Million of Assets That Includes $12

question 48

Multiple Choice

A firm has $75 million of assets that includes $12 million of cash and 25 million shares outstanding.If the firm uses $12 million of cash to repurchase shares,what is the new price per share?

• A)$1
• B)$2
• C)$3
• D)$4
• E)$5

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Definitions:

Identity Formation

The development of a distinct personality or self-concept that integrates various roles, attitudes, skills, and beliefs.

Erikson

A developmental psychologist known for his theory on the psychosocial development of humans, which describes eight stages from infancy to adulthood with each stage presenting a conflict that must be resolved.

Adolescence

This period involves significant changes in both physiological and psychological aspects, usually starting with puberty and concluding upon reaching legal age.

Identity Development

The process through which individuals achieve a sense of who they are and of their moral and political beliefs, their career preferences, and their relationship to their culture and community.