Suppose Contrail Air, Inc. is going to repurchase $22,800 shares of stock. The market value Balance Sheet is provided below.
| Repurchase | $22,800 |
| Shares outstanding | 14,000 |
| Dividend per share | $1.30 |
Market Value Balance Sheet
| Cash | $55,000 | Equity | $465,000 | |
| Fixed assets | $410,000 | |||
| Total | $465,000 | Total | $465,000 |
What will the price per share be after the repurchase?
30.11
36.64
22.06
33.21
Ans ; Before repurchase
Stock price = Market value of Equity / shares outstanding
= $ 465,000 / 14,000
= 33.21
Stock price will be the same even after the repurchase , therefore stock price = $ 33.21
Option (D)
Suppose Contrail Air, Inc. is going to repurchase $22,800 shares of stock. The market value Balance...