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

question 62

Multiple Choice

A firm has a total market value of assets of $300 that includes $40 million of cash and 10 million shares outstanding. If the firm uses $30 million of its cash to repurchase shares, what is the new price per share?

• A) $24.00
• B) $36.00
• C) $30.00
• D) $42.00

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Definitions:

Bilayer

Often refers to the lipid bilayer, a thin polar membrane made of two layers of lipid molecules, forming the basic structure of cell membranes.

Permeable Barrier

A structure or material that allows the passage of particles, such as liquids or gases, through itself while blocking others, based on size, shape, or other properties.

Plasma Membrane

A bi-layer of lipids and proteins surrounding a cell, regulating the passage of substances in and out of the cell.

Proteins

Large molecules composed of amino acids that perform a vast array of functions within living organisms, including structural support, enzyme catalysis, and immune response.