16-9 Stock Repurchase Example- Cash dividend versus share repurchase Assets Liabilities& 2 Equi的 B. After cash dividend Cash $50,000Debt Other assets 850.000 Equity 900.000 Value of Firm 900,000 Value of Firm 900,000 Shares outstanding= 100,000 Price per share=$900,000/100,000=$9 Irwin/McGraw-Hill CThe McGraw-Hill Commpanies, Inc, 2001©The McGraw-Hill Companies, Inc.,2001 16- 9 Irwin/McGraw-Hill Stock Repurchase Assets Liabilities & Equity B. After cash dividend Cash $50,000 Debt 0 Other assets 850,000 Equity 900,000 Value of Firm 900,000 Value of Firm 900,000 Shares outstanding = 100,000 Price per share = $900,000 / 100,000 = $9 Example - Cash dividend versus share repurchase