A firm has $200 million of assets that includes $60 million of cash and 12 million shares outstanding. If the firm uses $20 million of its cash to repurchase shares, what is the new price per share? A. $23.33 B. $16.67 C. $20.00 D. $13.33
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To find the initial price per share, divide the total assets ($200 million) by the number of shares outstanding (12 million). Initial price per share = $200 million / 12 million shares = $16.67 Show more…
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