A firm has a market value equal to its book value. Currently, the firm has excess cash

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A firm has a market value equal to its book value. Currently, the firm has excess cash of $3,000 and other assets of $6,000. Equity is worth $9,000. The firm has 900 shares of stock outstanding and net income of $1,650. The firm has decided to spend all of its excess cash on a share repurchase program. How many shares of stock will be outstanding after the stock repurchase is completed?
A. 910 shares
B. 620 shares
C. 310 shares
D. 600 shares
E. 610 shares
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Financial Institutions Management A Risk Management Approach

ISBN: 978-0071051590

8th edition

Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders

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