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Global Mickey Inc. has 26 million shares outstanding and a market capitalization of $1,823.12 million. The company plans to distribute $200 million to shareholders by
Global Mickey Inc. has 26 million shares outstanding and a market capitalization of $1,823.12 million. The company plans to distribute $200 million to shareholders by repurchasing its own shares at the current market price. Assume perfect capital markets (ignore taxes and signaling effects).
Part 1
What should be the stock price just before the repurchase?
Part 2
How many shares will the company repurchase (in million)?
Part 3
What should be the stock price right after the repurchase?
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