Foundations Of Finance
Foundations Of Finance
10th Edition
ISBN: 9780134897264
Author: KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher: Pearson,
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Chapter 13, Problem 2.2MC
Summary Introduction

Case summary:

Person X on the board of directors of company B, and the company has declared its policy to pay dividends of $550,000. Immediately, there are 275,000 shares outstanding, and the earnings per share is $6. It seems like the stock should trade for $45 after the ex-dividend date. If rather of paying a dividend, the management has chosen to repurchase stock,

To determine: The number of shares repurchased.

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Students have asked these similar questions
What is treasury stock? Why would a company repurchase its own stock? How might they dispose of the treasury stock?
What are bonus shares?
Why would a firm repurchase its stock? Discuss.
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What Are Stock Buybacks and Why Are They Controversial?; Author: TD Ameritrade;https://www.youtube.com/watch?v=2O4bmcliaog;License: Standard youtube license