A company issues $1$ million shares. The face value of shares of this

company is $25$ euros per share, but the company issues the shares at

a price of $35$ euros per share.

a$)$ How much money does the company raise in the issue?

a$)$ How much is the value of the issuance premium?

a$)$ Suppose that one day later the share price has increased by $8\%$

with respect to the issue price. Suppose that the company wants

to buy back shares. What price will the company pay?

a$)$ If the company buys $25,000$ shares. How much will it pay in total?a$)$ Are the repurchased shares part of the equity value of the

company?