mvFSU-Central Authent x Chega Study | Guided So × y Chapter 17 Homework c Dezto.
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mvFSU-Central Authent x Chega Study | Guided So × y Chapter 17 Homework c Dezto.mheducation.com/hm.tpx?-0.3966517338164026-1449525182480 Question 1 (of 4) Save & ExitSubmit he balance sheet for Ferguson Corp. is shown here in market value terms. There are 5,000 shares of stock outstandin Market Value Balance Sheet $ 43,900 Equity $ 373,900 Cash Fixed assets 330,000 Total 373,900 Total 373,900 Instead of a dividend of $1.60 per share, the company has announced a share repurchase of $8,000 worth of stock How many shares will be outstanding after the repurchase? (Do not round intermediate calculations. Round your final answer to 2 decimal places, e.g., 32.16.) Shares outstanding What will the price per share be after the repurchase? (Do not round intermediate calculations. Round your final answer to 2 decimal places, e.g., 32.16.) New stock price Hints eBook & Resources Hint #1 4:55 PM 12/7/2015Explanation / Answer
Price of each stock = market value of equity/number of shares outstanding = 373900/5000 = 74.78
number of stocks repurchased = 8000/74.78 = 106.98~107
number of stocks remaining after repurchase = 5000-107 = 4893
New stock price = market value of equity/number of shares outstanding = 373900/4893 = 76.415`76.42
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