Examlex

Solved

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?


Definitions:

Beta Stock

An indicator of how much a stock's price fluctuates compared to the entire market, with a higher beta signifying more instability.

Risk Aversion

The preference for a certain outcome over others with a higher potential for gain but also with higher risk.

Risk Associated

The potential for loss or uncertainty in investment or business activities due to various factors.

Inflation

A measure of the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Related Questions