Problem 14-8 Share Repurchase [LO 4] The balance sheet for Price Cut, Inc., is s
ID: 2698924 • Letter: P
Question
Problem 14-8 Share Repurchase [LO 4]
The balance sheet for Price Cut, Inc., is shown here in market value terms. There are 26,000 shares of stock outstanding.
In lieu of a dividend of $1.30, the company has announced it is going to repurchase $33,800 worth of stock instead of paying a dividend.
How many shares will be outstanding after the repurchase? (Round your answer to the nearest whole number (e.g., 32).)
What will the price per share be after the repurchase? (Do not include the dollar sign ($). Round your answer to 2 decimal places (e.g., 32.16).)
The balance sheet for Price Cut, Inc., is shown here in market value terms. There are 26,000 shares of stock outstanding.
Explanation / Answer
1. Reduce by 33800
2. 24525 shares
3. 22.92
4. yes