5· value: 5.88 points The balance sheet for Ferguson Corp. is shown here in mark

Question

5· value: 5.88 points The balance sheet for Ferguson Corp. is shown here in market value terms. There are 5,000 shares of stock outstanding. Market Value Balance Sheet 43,800 Equity Cash Fixed assets 320,000 $ 363,800 Total S 363,800 Total 363,800 Instead of a dividend of $1.50 per share, the company has announced a share repurchase of $7,500 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.) Shares outstanding 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.) New stock price

Explanation / Answer

No of shares outstanding 5000 value of equity 363800 Value per share 363800/5000 72.760 No of shares can repurchase =7500/72.76            103 After repurchase No of shares outstanding =5000-103 4897 Value of Equity =363800-103*72.76 356306 Price per share after repurchase =356306/4897 72.76

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