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Category > Accounting Posted 27 May 2017 My Price 5.00

A firm with 100 million shares outstanding repurchased 10 million shares

A firm with 100 million shares outstanding repurchased 10 million shares at the market price of $20 per share. What is the total market value of the equity after the repurchase? What is the per-share value after the repurchase?

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Status NEW Posted 27 May 2017 11:05 AM My Price 5.00

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file 1495885630-Answer.docx preview (58 words )
A----------- fi-----------rm -----------wit-----------h 1-----------00 -----------mil-----------lio-----------n s-----------har-----------es -----------out-----------sta-----------ndi-----------ng -----------rep-----------urc-----------has-----------ed -----------10 -----------mil-----------lio-----------n s-----------har-----------es -----------at -----------the----------- ma-----------rke-----------t p-----------ric-----------e o-----------f $-----------20 -----------per----------- sh-----------are-----------. W-----------hat----------- is----------- th-----------e t-----------ota-----------l m-----------ark-----------et -----------val-----------ue -----------of -----------the----------- eq-----------uit-----------y a-----------fte-----------r t-----------he -----------rep-----------urc-----------has-----------e? -----------Wha-----------t i-----------s t-----------he -----------per------------sh-----------are----------- va-----------lue----------- af-----------ter----------- th-----------e r-----------epu-----------rch-----------ase-----------? -----------Ans-----------wer-----------: ----------- Ma-----------rke-----------t v-----------alu-----------e o-----------f e-----------qui-----------ty -----------= 1-----------00m----------- x -----------$20----------- = -----------$2,-----------000----------- (b-----------efo-----------re -----------and----------- af-----------ter----------- th-----------e r-----------epu-----------rch-----------ase-----------) ----------- It----------- re-----------pur-----------cha-----------sed----------- 10----------- mi-----------lli-----------on ----------- -----------
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