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How do you calculate the market value of holding after repurchase to get the answer above? 14. ABC Inc. has 1 mln shares outstanding currently
How do you calculate the market value of holding after repurchase to get the answer above?
14. ABC Inc. has 1 mln shares outstanding currently trading at $8 each. You own 10,000 shares and the organization announces that it will use cash to repurchase 10% of its outstanding equity. If you hold on to your 10,000 shares, what will be the market value of your holdings after the repurchase? a. $80,000 b. $88,888 c. $90,000 d. $100,000Step by Step Solution
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