Question: > 12 V B A *** Merge Gem B 9 11 12 A B XV fx C D Chapter 17-Dropbox 4.4 Problem 3: Share

> 12 V B A *** Merge Gem B 9 11 12 A B XV fx C D Chapter 17-Dropbox 4.4 Problem 3: Share Repurchase E F G H In the previous problem (#2), suppose Ferguson has announced it is instead going to repurchase $15,600 of stock. a) What effect will this have on the equity of the firm? How much will equity change? b) How many shares will remain outstanding after the purchase? c) What will the price be per share after the repurchase? d) Show how the repurchase is effectively the same as a cash dividend. K Create your Original Solution Below - Be sure to show all calculations and clearly indicate answers. 13 14

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