Problem 14-8 Share Repurchase [LO 4]

The balance sheet for Throwing Copper, Inc., is shown here in market value terms. There are 26,000 shares of stock outstanding.

Market Value Balance Sheet
Cash	$	156,000
Fixed assets		514,800		Equity	$	670,800
Total	$	670,800		Total	$	670,800

The compay has announced it is going to repurchase $26,000 worth of stock instead of paying a dividend of $1.00. What effect will this transaction have on the equity of the firm? (Input the answer as positive value. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Will (Click to select)increasereduce shareholders equity by $ How many shares will be outstanding after the repurchase? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) New shares outstanding What will the price per share be after the repurchase? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Share price $