Tucker’s National Distributing has a current market value of equity of $10,665. Currently, the firm has excess cash of $640, total assets of $22,400, net income of $3,210, and 500 shares of stock outstanding. Tucker’s is going to use all of its excess cash to repurchase shares of stock. What will the stock price per share be after the stock repurchase is completed?
Tucker’s National Distributing has a current market value of equity of $10,665. Currently, the firm has excess cash of $640, total assets of $22,400, net income of $3,210, and 500 shares of stock outstanding. Tucker’s is going to use all of its excess cash to repurchase shares of stock. What will the stock price per share be after the stock repurchase is completed?
Chapter14: Distributions To Shareholders: Dividends And Repurchases
Section: Chapter Questions
Problem 2STP
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Tucker’s National Distributing has a current market value of equity
of $10,665. Currently, the firm has excess cash of $640, total assets
of $22,400, net income of $3,210, and 500 shares of stock outstanding.
Tucker’s is going to use all of its excess cash to repurchase shares
of stock. What will the stock price per share be after the stock
repurchase is completed?
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