A Firm Has a Total Market Value of Assets of $300

question 65

Multiple Choice

A firm has a total market value of assets of $300 million that includes $60 million of cash and 8 million shares outstanding. If the firm uses $30 million of its cash to repurchase shares, what is the new price per share?

• A) $37.50
• B) $30.00
• C) $45.00
• D) $52.50

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Definitions:

Statistic

A numerical value that represents a summary measure of a sample, used to estimate parameters of the population.

Commuting Distance

The distance that an individual travels from their home to their place of work or study.

Parameter

A numerical characteristic or measure that describes and summarizes a whole population.

Statistic

is a single measure, calculated from sample data, used to infer or describe properties of a population.