The balance sheet for Sinking Ship Corp. is shown here in market value terms. There are 10,000 shares of stock outstanding. Market Value Balance Sheet Cash $ 45,000 Equity $ 485,000 Fixed assets 440,000 Total $ 485,000 Total $ 485,000 Instead of a dividend of $1.90 per share, the company has announced a share repurchase of $19,000 worth of stock. a. How many shares will be outstanding after the repurchase? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What will the price per share be after the repurchase? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
The balance sheet for Sinking Ship Corp. is shown here in market value terms. There are 10,000 shares of stock outstanding. Market Value Balance Sheet Cash $ 45,000 Equity $ 485,000 Fixed assets 440,000 Total $ 485,000 Total $ 485,000 Instead of a dividend of $1.90 per share, the company has announced a share repurchase of $19,000 worth of stock. a. How many shares will be outstanding after the repurchase? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What will the price per share be after the repurchase? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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Question
|
The balance sheet for Sinking Ship Corp. is shown here in market value terms. There are 10,000 shares of stock outstanding. |
| Market Value Balance Sheet | ||||||
| Cash | $ | 45,000 | Equity | $ | 485,000 | |
| Fixed assets | 440,000 | |||||
| Total | $ | 485,000 | Total | $ | 485,000 | |
|
Instead of a dividend of $1.90 per share, the company has announced a share repurchase of $19,000 worth of stock. |
| a. |
How many shares will be outstanding after the repurchase? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| b. | What will the price per share be after the repurchase? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
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