The balance sheet for Pie Crust, Inc., is shown here in market value terms. There are...

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Finance

The balance sheet for Pie Crust, Inc., is shown here in marketvalue terms. There are 15,000 shares of stock outstanding.
Market Value Balance Sheet
  Cash $140,000
  Fixed assets 470,000     Equity $610,000
      Total   $610,000         Total $610,000
In lieu of a dividend of $1.20, the company has announced it isgoing to repurchase $18,000 worth of stock instead of paying adividend.
Requirement 1:
What effect will this transaction have on theequity of the firm? (Do not roundintermediate calculations. Input the amount aspositive value.)
  Will (Click to select)reduceincrease shareholders’equity by $
Requirement 2:
How many shares will be outstanding after the repurchase?(Do not round intermediatecalculations.Round your answer to the nearestwhole number (e.g., 32).)
  New shares outstanding
Requirement 3:
What will the price per share be after the repurchase?(Do not round intermediatecalculations. Round your answer to 2 decimalplaces (e.g., 32.16).)
  Share price $
Requirement 4:
Is the share repurchase effectively the same as acash dividend?

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The balance sheet for Pie Crust, Inc., is shown here in marketvalue terms. There are 15,000 shares of stock outstanding.Market Value Balance Sheet Cash$140,000 Fixed assets470,000 Equity$610,000 Total $610,000 Total$610,000 In lieu of a dividend of $1.20, the company has announced it isgoing to repurchase $18,000 worth of stock instead of paying adividend.Requirement 1:What effect will this transaction have on theequity of the firm? (Do not roundintermediate calculations. Input the amount aspositive value.) Will (Click to select)reduceincrease shareholders’equity by $Requirement 2:How many shares will be outstanding after the repurchase?(Do not round intermediatecalculations.Round your answer to the nearestwhole number (e.g., 32).) New shares outstanding Requirement 3:What will the price per share be after the repurchase?(Do not round intermediatecalculations. Round your answer to 2 decimalplaces (e.g., 32.16).) Share price$ Requirement 4:Is the share repurchase effectively the same as acash dividend?

Cash	$140,000
Fixed assets	470,000	Equity	$610,000

Total	$610,000	Total	$610,000

Requirement 1:
What effect will this transaction have on theequity of the firm? (Do not roundintermediate calculations. Input the amount aspositive value.)

Requirement 2:
How many shares will be outstanding after the repurchase?(Do not round intermediatecalculations.Round your answer to the nearestwhole number (e.g., 32).)

Requirement 3:
What will the price per share be after the repurchase?(Do not round intermediatecalculations. Round your answer to 2 decimalplaces (e.g., 32.16).)

Requirement 4:
Is the share repurchase effectively the same as acash dividend?