Question: The balance sheet for Pie Crust, Inc., is shown here in market value terms. There are 25,000 shares of stock outstanding. In lieu of a

 The balance sheet for Pie Crust, Inc., is shown here in

The balance sheet for Pie Crust, Inc., is shown here in market value terms. There are 25,000 shares of stock outstanding. In lieu of a dividend of $1.30 the company has announced it is going to repurchase $35, 500 worth of stock instead of paying a dividend. What effect will this transaction have on the equity of the firm? (Do not round intermediate calculations. Input the amount as positive value.)

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