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 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.)
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
