A Firm Has a Market Value Equal to Its Book

question 72

Multiple Choice

A firm has a market value equal to its book value.Currently,the firm has excess cash of $512 and other assets of $9,500.Equity is worth $6,400.The firm has 250 shares of stock outstanding and net income of $1,500.Assume the firm uses all of its excess cash for a stock repurchase.What will the price per share be after the repurchase?

• A)$25.60
• B)$27.83
• C)$28.08
• D)$24.19
• E)$25.25

---

Definitions:

Colonial Foundations

Colonial foundations refer to the early settlements, institutions, and systems established by colonizing powers that significantly influenced the development and history of the colonized regions.

Religious Differences

Variations in beliefs, practices, and doctrines among different religious groups, often a source of conflict or diversity within societies.

Spanish Armada

The fleet dispatched by Spain in 1588 as part of a planned invasion of England, which ended in defeat, marking a pivotal moment in Anglo-Spanish relations.

Roman Catholic Church

The largest Christian church, led by the Pope in Vatican City, with a global presence and centuries-long influence on religious, cultural, and political affairs.