The balance sheet for Levy Corp. is shown here in market value terms: Market Value Balance Sheet
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Question:
The balance sheet for Levy Corp. is shown here in market value terms:
Market Value Balance Sheet
| Cash $30000 | $30000 | Equity | $380000 |
| Fixed Assets | $370000 | Debt | $20000 |
| Total | $400000 | Total | $400000 |
Total $400000
There are 10,000 shares of stock outstanding. Suppose the company repurchases stocks.The repurchase corresponds to a total payout of $48450. What is the market capitalization of the equity after the repurchase is complete? How many stocks outstanding there are?
Expert Answer:
i Total market value of equity 380000 ii Total number of shares 10000 iii So ... View the full answer
Related Book For 
Corporate Finance Core Principles and Applications
ISBN: 978-0077905200
3rd edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
Posted Date:
