• Home
  • Blog
  • A firm has a market value equal to its book value. Currently, the firm has excess cash of $600 and other assets of $5,400. Equity is worth $6,000.

A firm has a market value equal to its book value. Currently, the firm has excess cash of $600 and other assets of $5,400. Equity is worth $6,000.

Daniel Kevins

0 comments

  • A firm has a market value equal to its book value. Currently, the firm has excess cash of $600 and other assets of $5,400. Equity is worth $6,000. The firm has 500 shares of stock outstanding and net income of $900. What will the new earnings per share be if the firm uses its excess cash to complete a stock repurchase?
Author Image

About the Author

Daniel Kevins

Follow me

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}