Explore BrainMass
Share

Explore BrainMass

    Value of firm's operations; how many shares remain

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    A firm has 10 million shares outstanding with a market price of $20 per share. The firm has $25 million in extra cash (short-term investments) that it plans to use in a stock repurchase; the firm has no other financial investments or any debt. What is the firm's value of operations, and how many shares will remain after the repurchase?

    © BrainMass Inc. brainmass.com October 10, 2019, 1:38 am ad1c9bdddf
    https://brainmass.com/business/accounting-for-corporations/value-firms-operations-many-shares-remain-342366

    Solution Preview

    Current value of a firm is the asset shown at its present worth. The current value of this firm is:
    10 million shares X $20 per share = $200 ...

    Solution Summary

    The value of firm's operations for how many shares remained is examined.

    $2.19