13.
The simplified balance sheet for MGT Inc. is shown below in market value terms. There
are 126,000 shares of stock outstanding. The firm has just announced that it will
repurchase \$126,560 worth of stock. What will be the market share price of the firm after
the repurchase is completed?
\$20
MGT INC.
Market Value Balance Sheet
As at December 31, 2015
Cash \$630,000 Debt \$0
Fixed
Assets \$1,890,000 Equity \$2,520,000
Total \$2,520,000 Total \$2,520,000