A TV business analyst commented that JPMorgan repurchase program is a raw deal for shareholders, because the company paid too much for its repurchased shares. Over the last quarter, JP Morgan repurchased 670.98 million shares at an average price of $12.846 per share. Shares outstanding are now 10,512.02M and the stock price is $11.6056, which business analysts regard as its fair value. Assume that the company is all equity financed. a. Assuming that $11.6056 is the fair post-repurchase price, what was JPMorgan trading for before the repurchase? b. If you bought 100 shares prior to the repurchase at the price calculated in the last question, and sold those shares today, then what is your profit (loss) on the investment? c. If you bought 100 shares prior to the repurchase at the price calculated in the last question, and sold the same percentage of shares as JPMorgan repurchased (for the same price that JPMorgan paid on average), then what is your profit (loss) on the investment? a. Assuming that $11.6056 is the fair post-repurchase price, what was JPMorgan trading for before the repurchase? Before the repurchase, JPMorgan was trading at $ . (Round to two decimal places.) b. If you bought 100 shares prior to the repurchase at the price calculated in the last question, and sold those shares today, then what is your profit (loss) on the investment (Sale Proceeds minus Cost of Investment)? Your profit (loss) on the investment is $ . (Round to two decimal places.) c. If you bought 100 shares prior to the repurchase at the price calculated in the last question, and sold the same percentage of shares as JPMorgan repurchased (for the same price that JPMorgan paid on average), then what is your profit (loss) on the investment (Sale Proceeds plus Value of Shares Remaining minus Cost of Investment)? Your profit (loss) on the investment is $ . (Round to two decimal places.) A TV business analyst commented that JPMorgan repurchase program is a raw deal for shareholders, because the company paid too much for its repurchased shares. Over the last quarter, JP Morgan repurchased 670.98 million shares at an average price of $12.846 per share. Shares outstanding are now 10,512.02M and the stock price is $11.6056, which business analysts regard as its fair value. Assume that the company is all equity financed. a. Assuming that $11.6056 is the fair post-repurchase price, what was JPMorgan trading for before the repurchase? b. If you bought 100 shares prior to the repurchase at the price calculated in the last question, and sold those shares today, then what is your profit (loss) on the investment? c. If you bought 100 shares prior to the repurchase at the price calculated in the last question, and sold the same percentage of shares as JPMorgan repurchased (for the same price that JPMorgan paid on average), then what is your profit (loss) on the investment? a. Assuming that $11.6056 is the fair post-repurchase price, what was JPMorgan trading for before the repurchase? Before the repurchase, JPMorgan was trading at $ . (Round to two decimal places.) b. If you bought 100 shares prior to the repurchase at the price calculated in the last question, and sold those shares today, then what is your profit (loss) on the investment (Sale Proceeds minus Cost of Investment)? Your profit (loss) on the investment is $ . (Round to two decimal places.) c. If you bought 100 shares prior to the repurchase at the price calculated in the last question, and sold the same percentage of shares as JPMorgan repurchased (for the same price that JPMorgan paid on average), then what is your profit (loss) on the investment (Sale Proceeds plus Value of Shares Remaining minus Cost of Investment)? Your profit (loss) on the investment is $ . (Round to two decimal places.)
