ABC Company has no debt and a market capitalization of $1.5 billion and 35 million shares outstanding. It plans to distribute $65 million to its shareholders through an open market repurchase. Assume that markets are efficient and that there are no frictions (i.e. no taxes, no transaction costs, etc.).

What i calculated is written in bold. Can you explain if these are right or wrong and why? thank you

1. What will the price per share of ABC be right before the repurchase? (Round to two decimals)

Market value of shares / total shares outstanding

=1.5/35= 0.04285=4.29$ per share

2. How many shares will be repurchased?

65/4.29=15.15 million shares can be repurchased

3. What will the price per share of ABC be right after the repurchase? (Round to two decimals)

65-15.15=49.85 million shares outstanding

MV= 1.5-65=1.435 billion in

Current share price: 1.435/49.85= 2.88$ per share