1. Suppose a firm does not pay a dividend but repurchases stock using $28 million of cash, the market value of the firm decreases by ________.
A) 0
B) -$28 million
C) $28 million
D) cannot say for sure
2. A firm has $300 million of assets that includes $40 million of cash and 10 million shares outstanding. If the firm uses $30 million of its cash to repurchase shares, what is the new price per share?
A) $24.00
B) $42.00
C) $30.00
D) $36.00