Alfredo Ltd of Ottawa ﬁrm has a market value equal to its book value. Currently, the ﬁrm has excess cash of $1,360 and other assets of $6,640. Equity is worth $8,000. The ﬁrm has 500 shares of stock
Outstanding and net income of $600. The ﬁrm has decided to spend all of its excess cash on a
Share repurchase program. How many shares of stock will be outstanding after the stock
Repurchase is completed?

Question

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The Answer of Alfredo Ltd of Ottawa ﬁrm has a market value equal to its book value. Currently, the ﬁrm has excess cash of $1,360 and other assets of $6,640. Equity is worth $8,000. The ﬁrm has 500 shares of stock
Outstanding and net income of $600. The ﬁrm has decided to spend all of its excess cash on a
Share repurchase program. How many shares of stock will be outstanding after the stock
Repurchase is completed?

Alfredo Ltd of Ottawa ﬁRm Has a Market Value Equal