A firm has 35,000 shares of stock outstanding at a price per share of $26. The c

Question

A firm has 35,000 shares of stock outstanding at a price per share of $26. The company has decided to repurchase $260,000 worth of shares. After the repurchase, there will be _____ shares outstanding.

5,000 shares

30,000 shares

25,000 shares

40,000 shares

Based on the information from Question 33, what is new market price of the stock after the repurchase?

$22.5 per share

$26.0 per share

$28.5 per share

$30.3 per share

Based on the information from Question 33 and 34, does the total market value of the common stock change after the stock repurchase?

yes

no

5,000 shares

30,000 shares

25,000 shares

40,000 shares

Based on the information from Question 33, what is new market price of the stock after the repurchase?

Explanation / Answer

Ans is 25,000 Shares Existing shares      35,000.00 Share Price              26.00 Repurchased Shares    260,000.00 No of shares repurchased(260,000/26)      10,000.00 Shares after repurchase(35,000-10,000)      25,000.00 Q34 26 per share Ans is no

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