Tucker's National Distributing has a current market value of equity of $32,400. Currently, the firm has excess cash of $2,100, total assets of $22,400, net income of $3,210, and 800 shares of stock outstanding. The company is going to use all of its excess cash to repurchase shares of stock. What will the stock price per share be after the stock repurchase is completed?
A) $40.87
B) $39.94
C) $40.06
D) $40.50
E) $39.42

Question

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The Answer of Tucker's National Distributing has a current market value of equity of $32,400. Currently, the firm has excess cash of $2,100, total assets of $22,400, net income of $3,210, and 800 shares of stock outstanding. The company is going to use all of its excess cash to repurchase shares of stock. What will the stock price per share be after the stock repurchase is completed?
A) $40.87
B) $39.94
C) $40.06
D) $40.50
E) $39.42

Tucker's National Distributing Has a Current Market Value of Equity