Blasco's Has a Market Value Equal to Its Book Value

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 1,200 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.How many shares of stock will be outstanding after the stock repurchase is completed?

A) 937 shares
B) 1,050 shares
C) 1,126 shares
D) 1,578 shares
E) 1,584 shares

Correct Answer:

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