22. How stock repurchases differ from dividends: You purchased 3,000 shares of Space Apparition Co. four years ago at $40 per share You have just received a mailing from the company announcing a fixed-price tender offer stock repurchase at $70 per share. Capital gains are taxed at 20 percent. If you participate in the repurchase, how much will you receive? A) $178,000 B) S2 10,000 C) $192,000 D) S31,500 23. The ex-dividend date: You own 10,000 shares of ABC Co., which is currently trading for $11.50 per share. The company has announced that it will soon pay a special dividend of S1.50 per share. Tomorrow is the ex-dividend day. Ignoring taxes, what do you expect your block of shares will be worth tomorrow? A S100,000 B) $200,000 C) $15,000 D) $115,000 24. Financial risk A) decreases a firm's business risk. B) is related to how debt affects the business decisions of a firm. C) increases a firm's business risk D) refers to the effect that a firm's financing decisions has on the riskiness to cash flows that investors will receive. 25. The cost of preferred equity: Billy's Goat Coats has a preferred share issue outstanding with a current price of $38.89. The firm last paid a dividend on the i $3.50 per share. What is the firm's cost of preferred equity? A)996 B) 7% C) 10% D) 8%