Ask Question
BusinessBusiness
8 August, 14:13

Davidson international has 13,700 shares of stock outstanding at a price per share of $28. the firm has decided to repurchase 500 of those shares in the open market. what will the price per share be after the share repurchase is completed? ignore taxes and market imperfections.

+1
Answers (1)
  1. 8 August, 16:37
    0
    The shareholder equity is equal to:

    $28/share * 13 700 shares = $ 383,600

    This is the total capital of Davidson International. Now, assuming that there is no additional income since it is not implied in the problem, the total equity does not change. However, the shares become: 13,700 + 500 = 14 200 shares.

    Price per share now becomes:

    $383 600 / 14 200 shares = $27/share
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Davidson international has 13,700 shares of stock outstanding at a price per share of $28. the firm has decided to repurchase 500 of those ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Why is active voice generally preferable for business messages?
Answers (1)
Who must know the scientific definitions of economics
Answers (1)
As HR Director at a large manufacturing firm, it is Henry's responsibility to ensure that employees are properly compensated according to a biweekly time schedule.
Answers (1)
8. A company requires 100 pounds of plastic to meet the production needs of a small toy. It currently has 10 pounds of plastic inventory. The desired ending inventory of plastic is 30 pounds.
Answers (1)
The Town of Red Herring issued $60,000 of purchase orders. Assume that when all orders were received, the actual cost was $59,000. How much would be recorded as expenditures when the goods are received? $60,000. $59,000. $1,000. $0.
Answers (1)
New Questions in Business
Assume you are the manager of a small firm that is dependent on a large manufacturing customer that uses the resource-dependence perspective.
Answers (1)
What percentage of new business ventures typically survive their first 5 years of operation?
Answers (1)
Multiple Choice Question 50 When manufacturing overhead costs are assigned to production in a process cost system, they are debited to a Work in Process account. the Finished Goods Inventory account. Cost of Goods Sold.
Answers (1)
The ability for a business to pay all that is owed is called what? a. Technology b. Strategies c. Obsolesce d. Solvency
Answers (2)
Ret A customer comes in to return an item and has their receipt but they are one day late with the return per the company return policy. Although you'd like to make an accommodation, you know that making too many could impact the store's profits.
Answers (2)
Home » Business » Davidson international has 13,700 shares of stock outstanding at a price per share of $28. the firm has decided to repurchase 500 of those shares in the open market.
Sign Up Forgot Password?