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b). The Commonwealth Bank of Australia (CBA) completed a $532 million off-market share buy-back on 29 March 2004 with a buy-back price of $27.50 per

b). The Commonwealth Bank of Australia (CBA) completed a $532 million off-market share buy-back on 29 March 2004 with a buy-back price of $27.50 per share, comprising an $11.00 capital component and a $16.50 fully-franked component. In March, CBA also announced a DRP price of $31.61. In May 2004, CBA announced a share purchase plan under which shareholders could apply for shares at $31.36. CBAs number of shares on issue prior the buy-back was 1,261,255,152; 19,360,759 shares were bought back, 5,916,319 shares were issued under the DRP and 14,891,250 shares were issued pursuant to the share purchase plan. Show the theoretical impact on the share price of the off-market buy-back, DRP and SPP compared with the market price of $33.22 prior to the buy-back.

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