Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. cisoft is a highly profitable technology firm that

Cisoft is a highly profitable technology firm that currently has $5cbillion in cash. The firm...

70.2K

Verified Solution

Question

Finance

Cisoft is a highly profitable technology firm that currently has $5cbillion in cash. The firm has decided to use this cash to repurchase shares from investors, and it has already announced these plans to investors. Currently, Cisoft is an all-equity firm with 4 billion shares outstanding. These shares currently trade for $9 per share. Cisoft has issued no other securities except for stock options given to its employees. The current market value of these options is $6 billion.

a. What is the market value of Cisoft's non-cash assets?

b. With perfect capital markets, what is the market value of Cisoft's equity after the share repurchase? What is the value per share

PLEASE SHOW WORK

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

Chemistry
1.2K views

Consider the manufacture of aspirin. Low-dose aspirin tablets are formulated to contain 81 mg of aspirin....

Psychology
1.2K views

i need a scenario for factorial design

Physics
1.2K views

1. Fireflies emit light across the visible spectrum, but the peak intensity of their emission is...

Physics
1.2K views

ou place an object 15 8 cm in front of a diverging lens which has...

Physics
1.2K views

An electromagnetic wave of frequency 1 10 4 hertz is propagating along z axis The...

Physics
1.2K views

In the given circuit the potential difference between point A and B is 18 V...

Basic Math
1.2K views

People who have beenabused will often experiencefeelings ofA. happiness, eagerness, and freedomB. depression, poor concentration,...

Basic Math
1.2K views

The mean age when smokers first start is 13 years old with a population standard...

Calculus
1.2K views

The Cauchy Problem for the Diffusion Equation We consider the initial value problem for a...

Accounting
1.2K views

A company's balance sheet shows: cash $24,600, accounts receivable $17,300, office equipment $53,250, and accounts...

Accounting
1.2K views

Question 1 The following data (in thousands of dollars) have been taken from the accounting...

Accounting
1.2K views

I need to find what the debit and credit numbers are. Please and thank you!!!...