Book value of share after repurchase

CFA Level II Corporate Finance
#1

When Market price>book value, book value reduce after repurchase. Can some one help me with the logic here?

#2
  • Assets = 100
  • Liabilities = 60
  • Equity = 40
  • 5 shares outstanding
  • BV per share = 8
  • MV per share = 10

You buy back one share.

  • Assets = 90
  • Liabilities = 60
  • Equity = 30
  • 4 shares outstanding
  • BV per share = 7.5
#3

Thanks a lot

#4

You’re welcome.