Acme Explosives Inc is an international producer of creative demolitio

Acme Explosives Inc is an international producer of creative demolition products. Selected financial information for Acme is provided in the table below. Acme wants to distribute all of its cash with an open market repurchase.

Assume that Acme is able to buy back 1,064,377,778 shares for an average price of $27 per share. What is Acme’s stock price after the repurchase?

Selected Financial Information
for Acme Corporation
Before Repurchase After Repurchas
Cash $28,738.2M $0
Market Capitalization $177,809.7M
Shares Outstanding 6,330M
Stock Price $28.09
Debt $0 $0

A) $27.33
B) $28.09
C) $28.31
D) $28.75
E) $28.33

ANSWER

C