Diego owns 100 shares of stock in Company A that are valued at $40/share.

After Company A repurchases 10% of its outstanding shares on the open market, what does Diego own?

• 100 shares valued at a lower price/share
• 90 shares valued at a higher price/share
• 90 shares valued at a lower price/share
• 100 shares valued at a higher price/share

 

How you calculate to get the answer also?