Share Repurchase in the previous problem, suppose apply Pie has announced it is going to repurchase $6,000

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Share Repurchase in the previous problem, suppose apply Pie has announced it is going to repurchase $6,000 worth of stock. What effects will this transaction have on the equity of the firm? How many shares will outstanding? What will the price per share be after the repurchase? Ignoring tax effects, show how the share repurchases is effectively the same as a cash dividend.

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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th Edition

Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan

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