Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. amc corporation currently has an enterprise value

AMC Corporation currently has an enterprise value (EV) of $310 million and $130 million in...

50.1K

Verified Solution

Question

Finance

image

AMC Corporation currently has an enterprise value (EV) of $310 million and $130 million in excess cash. The firm has 20 million shares outstanding and no debt. Suppose AMC uses its excess cash to repurchase shares. After the share repurchase, news will come out that will change AMC's enterprise value to either $510 million or $110 million. Suppose AMC waits until after the news comes out to do the share repurchase. What is AMC's share price after the repurchase if its enterprise value goes up? What is AMC's share price after the repurchase if its enterprise value declines? The share price after the repurchase if its enterprise value goes up is $ . (Round to two decimal places.) The share price after the repurchase if its enterprise value declines is $ . (Round to two decimal places.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Engberg Company installs lawn sod in home yards. The company’s most recent monthly contribution format income...

Advance Math
1.2K views

Prove the following: theorem: every topological group is completely regular. Proof. Let V0 be a neighborhood...

Basic Math
1.2K views

Solve the inequality and write your answer in interval notation.20x-8 ? 16+ 2x

Basic Math
1.2K views

A theater group made appearances in two cities. The hotel charge before tax in the...

Accounting
1.2K views

Saved A company uses the dollar-value LIFO method of computing inventory. An external...

Accounting
1.2K views

k/' 1 THE TORO COMPANY AND SUBSIDIARIES Consolidated Statements of Earnings (Dollars and shares...

Accounting
1.2K views

As a result of the inflation reduction act, the resiential clean energy credit has been...

Accounting
1.2K views

Steve owns a computer store. Which of the following items should he include in his...

Accounting
1.2K views

The following information relates to Billie Ltd. Since the date of acquisition, Billie Ltd has...

Finance
1.2K views

The income statement and a schedule reconciling cash flows from operating activities to net income...

Accounting
1.2K views

Assume a company issues $40,000 and $55,000 of raw material for production use in its...

Accounting
1.2K views

Griffin Service Company, Inc., fue organizada por Bennett Griffin y otros cinco inversores. Durante el...