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

question 59

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) $2.40
• B) $1.50
• C) $3.00
• D) $6.00

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Definitions:

Surgical Treatment

Medical procedures involving incisions with instruments, performed to repair damage or arrest disease in a living body.

Ayurvedic Medicine

A system of traditional medicine native to India, emphasizing balance in bodily systems through diet, herbal treatment, and yogic breathing.

Body

The physical structure of a person or an organism, comprising the skeletal, muscular, and organ systems.

Mind

The element of a person that enables them to be aware of the world and their experiences, to think, and to feel; the faculty of consciousness and thought.