A firm has 5 million shares outstanding with a market price of $35 per share. The firm has $40 million in extra cash (short-term investments) that it plans to use in a stock repurchase; the firm has no other financial investments or any debt. What is the firm's value of operations after the repurchase? Enter your answer in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answer to two decimal places.

$   million

How many shares will remain after the repurchase? Round your answer to the nearest whole number.

Answer rating: 100% (QA)

To calculate the firms value of operations after the repurchase we first need to determine the value of the stock repurchase The firm has 40 million i... View the full answer