Question
Assume the firm uses the $40,000 excess cash to buy back its stock at $5 per shares. You own 10% of the firm's stock before
Assume the firm uses the $40,000 excess cash to buy back its stock at $5 per shares.
You own 10% of the firm's stock before the repurchase and this comprises your total
wealth. How will you create "home-made dividend"?
Sell no shares
Sell 475 shares
Sell 500 shares
Sell 800 shares
None of the above.
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The Oxford Handbook Of Computational Economics And Finance
Authors: Shu-Heng Chen, Mak Kaboudan, Ye-Rong Du
1st Edition
0199844372, 978-0199844371
