A firm has 10 million shares outstanding, with a $20 per share market price. The firm has $25 million in extra cash that it plans to use in a stock repurchase; the firm has no other financial investments.

What is the firm's value of operations, and how many shares will remain after the repurchase? (Answer: $175 million value and 8.75 million shares)

Show the calculations.

What is the firm's value of operations, and how many shares will remain after the repurchase? (Answer: $175 million value and 8.75 million shares)

Show the calculations.