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Cranbourne Ltd has 460 000 shares outstanding and the total market value of the equity is...

Cranbourne Ltd has 460 000 shares outstanding and the total market value of the equity is $1 610 000. The firm has just announced a repurchase of $420 000 worth of shares. After the repurchase, Centropen will have ____ shares outstanding at a market price of ____ per share.

a.

310,000; $3.30
b.

250,000; $2.59
c.

301,000; $3.10
d.

340,000; $3.50
e.

320,000; $3.40
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Answer #1

d. 340000 ; $3.5

Cranbourne Ltd has 460 000 shares outstanding before repurchase

after repurchase Cranbourne Ltd has 340 000 shares outstanding as per following calculation

460000 share - $420000 / 3.5 = 340000

and share price per share is same

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