Million shares outstanding with a market price


Problem:

Either Enterprise has 14 million shares outstanding with a market price of 23 per share. The firm has $26 million in extra cash (short-term investments) that it plans to use in a stock repurchase; the firm has no other financial investments or any debt.

Required:

Question: How many shares, in millions, will remain after the repurchase?

Note: Please describe comprehensively and provide step by step solution.

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Finance Basics: Million shares outstanding with a market price
Reference No:- TGS0877895

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