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Non-Cash Assets and Repurchasing Shares

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Please help with the following problems. Provide step by step calculations for each.

1. John is a successful logistical services firm that currently has $5 billion in cash. John has decided to use this cash to repurchase shares from its investors, and has already announced the stock repurchase plan. Currently John is an all equity firm with 1.25 billion shares outstanding. John's shares are currently trading at $20 per share. What is the market value of John's non-cash assets?

2. John is a successful logistical services firm that currently has $5 billion in cash. John has decided to use this cash to repurchase shares from its investors, and has already announced the stock repurchase plan. Currently John is an all equity firm with 1.25 billion shares outstanding. John's shares are currently trading at $20 per share. After the repurchase how many shares will John have outstanding?

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Solution Summary

The market value of non-cash assets are calculated. Step by step calculations are provided.

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Question 1: What is the market value of John's non-cash assets?
1.25 billion x 20 ...

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