Stock Repurchase Shares & Value of Operations
A firm has 10 million shares outstanding, with a $20 per share market price. The firm has $25 million in extra cash that it plans to use in a stock repurchase; the firm has no other financial investments.
What is the firm's value of operations, and how many shares will remain after the repurchase?© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/business/accounting/stock-repurchase-shares-value-of-operations-7e9n
... spend cash of $25 million (the current value also includes the cash of $25million) and so the value of the firm ...