Answer: $56

## Calculation Explanation **Given Information:** - Share price: $50 - Shares outstanding: 100 million - Book value of equity: $6,000 million - Buyback amount: $400 million **Step 1: Calculate shares repurchased** - Shares repurchased = Buyback amount / Share price - Shares repurchased = $400 million / $50 = 8 million shares **Step 2: Calculate remaining shares after buyback** - Remaining shares = Initial shares - Shares repurchased - Remaining shares = 100 million - 8 million = 92 million shares **Step 3: Calculate new book value of equity** - New book value = Initial book value - Buyback amount - New book value = $6,000 million - $400 million = $5,600 million **Step 4: Calculate new book value per share** - New BVPS = New book value / Remaining shares - New BVPS = $5,600 million / 92 million = $60.87 **Step 5: Compare to options** - $60.87 is closest to $61 (Option B) Wait, let me double-check the calculation: - Initial BVPS = $6,000 million / 100 million = $60 - After buyback: $5,600 million / 92 million = $60.87 ≈ $61 Therefore, the book value per share after the transaction will be closest to **$61** (Option B).

Author: LeetQuiz .