Problem:
Blasco's has a market value equal to its book value. Currently, the firm has excess cash of $1,332, other assets of $11,674, and equity of $7,200. The firm has 600 shares of stock outstanding and net income of $838. Blasco's has decided to spend one-third of its excess cash on a share repurchase program.
Required:
Question: How many shares of stock will be outstanding after the stock repurchase is completed?
Note: Show supporting computations in good form.