The balance sheet for Ferguson Corp. is shown here in market value terms. There

Question

The balance sheet for Ferguson Corp. is shown here in market value terms. There are 8,000 shares of stock outstanding Market Value Balance Sheet S 45,600 Equity 545,600 Cash Fixed assets 500,000 Total 545,600 Total S 545,600 Instead of a dividend of $1.90 per share, the company has announced a share repurchase of $15,200 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. Rouno your final answer to 2 decimal places, e.g., 32.16.) New stock price

Explanation / Answer

Share price = $545,600/8,000 = $68.20

Shares outstanding:

= Shares-Shares repurchased

= 8,000-$15,200/$68.20

= 7,777.17 shares

New stock price:

Stock repurchase does not affect stock price.

= $545,600/8,000

= $68.20

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.