× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
5
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
New Topic  
johnpaech johnpaech
wrote...
Posts: 1098
Rep: 7 0
6 years ago
If Wyatt Oil distributes the $70 million as a share repurchase, then its stock price after the share repurchase will be closest to:
A) $11.00
B) $12.50
C) $14.00
D) $17.50
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
Read 89 times
1 Reply

Related Topics

Replies
wrote...
6 years ago
D
Explanation:  D) current price =   =   = $17.50
Therefore Wyatt Oil will repurchase $70 million/$17.50 = 4 million shares, leaving 20 - 4 = 16 million shares outstanding.
Therefore after the repurchase price =   =   = $17.50
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  1277 People Browsing
Related Images
  
 336
  
 274
  
 1629