BK Corporation has a value of operations equal to P2,100, short-term investments of  P100, debt of P200, and 100 shares of stock.  If BK converts its short-term investments to cash and repurchases P100 of its stock, what is the resulting estimated intrinsic stock price and how many shares remain outstanding?

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter14: Distributions To Shareholders: Dividends And Repurchases
Section: Chapter Questions
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BK Corporation has a value of operations equal to P2,100, short-term investments of  P100, debt of P200, and 100 shares of stock. 

If BK converts its short-term investments to cash and repurchases P100 of its stock, what is the resulting estimated intrinsic stock price and how many shares remain outstanding? 

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