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Charra [1.4K]
1 year ago
5

Davidson international has 13,700 shares of stock outstanding at a price per share of $28. the firm has decided to repurchase 50

0 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.
Business
1 answer:
alexdok [17]1 year ago
6 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

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Answer:

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2. Ordinary income of $60,000

Explanation:

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b. Based on the information given we were told that the tenant paid her the amount of $60,000 in order to cancel its obligations under the lease which means that the amount and character of her income from the cancelled lease will be ORDINARY INCOME of the amount of $60,000 which we were told the tenant paid her in order to cancel its obligations under the lease.

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To buy new equipment, a business owner borrowed $4,200.00 for 2 years and paid $850.00 simple interest on the loan. What rate of
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Answer:

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