The balance sheet for Quinn Corporation is shown here in market value terms. There are 30,000 shares of stock outstanding.Market Value Balance Sheet$ 137,000826,600$ 963,600CashFixed assetsTotalEquityTotalThe compay has announced it is going to repurchase $51,000 worth of stock instead of paying a dividend of $1.70.a. What effect will this transaction have on the equity of the firm?Note: Input the answer as positive value. Do not round intermediate calculations and round your answer to the nearestwhole number, e.g., 32.a. The transaction willb. New shares outstandingc. Share priceb. How many shares will be outstanding after the repurchase?Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.c. What will the price per share be after the repurchase?Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.$ 963,600$ 963,600reduce28,41232.12shareholders' equity by $ 912,600

a. The repurchasing of shares will reduce the number of shares outstanding and the shareholder's…

Answered: The balance sheet for Quinn Corporation…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter14: Distributions To Shareholders: Dividends And Repurchases

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Problem 2STP

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