Question: A balance sheet showing the starting conditions before dividends or buybacks Assets Liabilities and Net Worth Cash $100 $60 Debt Operating Assets $100 $140 Equity

A balance sheet showing the starting conditions before dividends or buybacks Assets Liabilities and Net Worth Cash $100 $60 Debt Operating Assets $100 $140 Equity 100 outstanding shares at $140 per share Now let's consider a share buyback. The company distributes $70 of that cash by buying back $70 worth of shares What happens to its assets What happens to its liabilities and net worth And what happens to the shareholders how much do they now have Again.

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Yur net wrth is the munt by whih yur ssets exeed yur libilities In simle terms net wrth is the differene between wht yu wn nd wht yu we If yur ssets e... View full answer

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