question archive PLO Bhd is a public listed firm mainly involved in the manufacture of precision tools and molds for the semiconductor, electrical and electronics industries

PLO Bhd is a public listed firm mainly involved in the manufacture of precision tools and molds for the semiconductor, electrical and electronics industries

Subject:AccountingPrice:2.87 Bought7

PLO Bhd is a public listed firm mainly involved in the manufacture of precision tools and molds for the semiconductor, electrical and electronics industries. The firm has a market capitalization of RM1 billion and 40 million shares outstanding. Following the appointment of a new CEO recently, the company plans to distribute a sum of RM125 million through an open market repurchase (assume perfect capital markets). Required:

i) Calculate the price per share of PLO Bhd prior to the repurchase.

ii) Calculate the number of outstanding shares that will be repurchased under this corporate exercise.

iii) Calculate and comment the price per share of the firm prior to and after the share repurchase transaction.

iv) Based on the information provided in Question  explain how the share repurchase conducted may transmit information about PLO Bhd to investors?

Option 1

Low Cost Option
Download this past answer in few clicks

2.87 USD

PURCHASE SOLUTION

Option 2

Custom new solution created by our subject matter experts

GET A QUOTE

rated 5 stars

Purchased 7 times

Completion Status 100%