AfirmRepurchase Inc has decided tobuyback sharesworth INR96 croresfrom themarket using the openmarketroute. The outstanding shares ofthe...

AfirmRepurchase Inc has decided tobuyback sharesworth INR96 croresfrom themarket using the openmarketroute. The outstanding shares ofthe firmis 50,00,000 and the current value of thisfirm isINR 1200 crores. Howmany shares will be bought back by this firm?

Expert Solution

Calculation of the number of shares that the firm can bought back:

Number of shares the firm can bought back = Fund available for buy back shares / Per share current value

Per share current value = INR 1200 Crores / 50,00,000

= $2,400 per share

No. of shares can be bought back = INR 96 Crores / $2,400 per share

= 400,000 Shares (Answer)

So, 400,000 shares will be bought back by this firm.

jeff jeffy answered 2 years ago

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