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Muppets Amalgamated Industries earns $100 million every year selling Muppets based merchandise. They retain 0% of their earnings. They pay annual dividends, with the next
Muppets Amalgamated Industries earns $100 million every year selling Muppets based merchandise. They retain 0% of their earnings. They pay annual dividends, with the next one scheduled for one year from today. The company is considering a stock buyback, which would reduce the number of outstanding shares of stock from 1 million to 900,000. If they do this, how much would the price of one share change? The effective annual rate is 10%. Select one: a. +$11 b. +$0 C. -$100 d. +$111 e. +$80
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