Answer:
$28.24
Explanation:
Total value of the firm's equity = 1000 shares * $30
Total value of the firm's equity = $30,000
Amount paid to Ms. Hostile = 150 shares*($30+$10)
Amount paid to Ms. Hostile = 150 shares * $40
Amount paid to Ms. Hostile = $6,000
Value of equity after paying = Total value of the firm's equity - Amount paid to Ms. Hostile
Value of equity after paying = $30,000 - $6,000
Value of equity after paying = $24,000
No. of shares remaining = 1,000 shares - 150 shares
No. of shares remaining = 850 shares
Value of each share = Value of equity after paying/No. of shares remaining
Value of each share = $24,000 / 850 shares
Value of each share = $28.23529
Value of each share = $28.24
