A rm has a market value equal to its book value Currently the rm has excess cash of $1,000 and other assets of $3,000' Equity is worth $4,000' The rmhas 500 shares of stock outstanding and net income of $1,250, The rm has decided to spend all of its excess cash on a share repurchase program, Howmany shares ofstock will be outstanding aer the stock repurchase is completed

Question: A rm has a market value equal to its book value. Currently. the rm has excess cash of $1,000 and other assets of $3,000' Equity

A ﬁrm has a market value equal to its book value. Currently. the ﬁrm has excess cash of $1,000 and other assets of $3,000' Equity is worth $4,000' The ﬁrmhas 500 shares of stock outstanding and net income of $1,250, The ﬁrm has decided to spend all of its excess cash on a share repurchase program, Howmany shares ofstock will be outstanding aﬁer the stock repurchase is completed?

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