The balance sheet for Ferguson Corp. is shown here in market value terms. There

Question

The balance sheet for Ferguson Corp. is shown here in market value terms. There are 5,000 shares of stock outstanding.

Instead of a dividend of $2.00 per share, the company has announced a share repurchase of $10,000 worth of stock.

How many shares will be outstanding after the repurchase? (Do not round intermediate calculations. Round your final answer to 2 decimal places, e.g., 32.16.)

What will the price per share be after the repurchase? (Do not round intermediate calculations. Round your final answer to 2 decimal places, e.g., 32.16.)

The balance sheet for Ferguson Corp. is shown here in market value terms. There are 5,000 shares of stock outstanding.

Explanation / Answer

Ferguson Corp Details Amt $/No No of Outstanding common Stock             5,000 Market value of Common Stock      414,300 Marrket Price per stock $      82.86 Repurchase Amount =        10,000 No Of Stocks to be repurchased=10000/82.86=              121 Nos After Repurchase   Common Stock Issued             5,000 Less Treasury Stock                121 Common Stock Outstanding           4,879 Price per share after repurchase   $      82.86 There will be no change in price as there is no additional issue , only treasury stock held by company.

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