Question: 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

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	$	136,000
Fixed assets		544,940	Equity	$	680,940
Total	$	680,940	Total	$	680,940

The compay has announced it is going to repurchase $36,400 worth of stock instead of paying a dividend of $1.40. What effect will this transaction have on the equity of the firm?

Fill in blank----> Will (reduce/increase) shareholders equity by $ ______

How many shares will be outstanding after the repurchase? _________

What will the price per share be after the repurchase? $_______

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