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The balance sheet of Maple Express Inc. is shown here in market value terms. There are 10,000 shares of stock outstanding.

     Cash                  $16,000                  Equity     $175,000

     Fixed Assets   $159,000                                

                                 175,000                                   175,000

The company has announced that it is going to repurchase $5,000 worth of stock. What will the price of the stock be after the repurchase? What is one advantage to a repurchase versus a special dividend?

Financial Management, Finance

  • Category:- Financial Management
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