Question: 2. Repurchases and Stock Splits (8 points) a) Share repurchases (4 points) TJ's has a market value equal to its book value. Currently, the firm

2. Repurchases and Stock Splits (8 points) a) Share repurchases (4

2. Repurchases and Stock Splits (8 points) a) Share repurchases (4 points) TJ's has a market value equal to its book value. Currently, the firm has excess cash of $218,500, other assets of $897,309, and equity of $547,200. The firm has 40,000 shares of stock outstanding and net income of $59,800. Management has decided to spend 15 percent of the excess cash on a share repurchase program. How many shares of stock will be repurchased? b) Stock split (4 points) A company has 36,000 shares of stock outstanding with a par value of $1 per share and a market price of $38 a share. The company just announced a stock split of four-for-three. How many shares of stock will be outstanding after the split? What will be the market price per share after the split? o O

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