In the previous problem, suppose the company has announced it is going to repurchase $22,400 worth of
Question:
In the previous problem, suppose the company has announced it is going to repurchase $22,400 worth of stock. What effect will this transaction have on the equity of the company? How many shares will be outstanding? What will the price per share be after the repurchase? Ignoring tax effects, show how the share repurchase is effectively the same as a cash dividend.
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Input Area Repurchase 22400 Shares outstanding 14000 Dividend ...View the full answer
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Related Book For 
Corporate Finance
ISBN: 978-0077861759
11th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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