otherwise worth 130) or 16 (when the firm is otherwise worth the value of the stock? 80.) IF this peoject is taken, whast will happen to A. Increase by 4.67% B. increase by 3.33% C. decrease by 3.33% D. decrease by 4.67% E, none of the above. 27 XYZ has 1000 shares outstanding at a price of 100 per share. xYZ decides that instend of its anticipated shares by offering its shareholders to tender shares for a payment of 110 800 regular dividend, it will repurchase 200 Per share. If more than 200 shares are tendered, XYZ will repurchase shares on a pro-rated basis, i.e., if shares are tendered, XYZ will buy from each investor 25% of the shares tendered. Ignoring taxes, the price of a share immediately after the repurchase will be_ announced will and the share price when the tender offer is A. 97.5, not change B. 97.5, increase C. 97.5, decrease D. less than 97.5, increase E. more than 97.5, decrease 28. A bond with five detachable warrants has just been offered for sale for $1,000. The bond matures in eight years and has an annual coupon of $60. Each warrant grants its owner the right to purchase two shares of stock in the company at $15 per share. Ordinary bonds (with no warrants) of similar quality are priced to yield 6.4 percent. What is the value of one warrant? A. $2.45 B. $5.67 C. $12.2 D. $24.45 E. $4.89 29. This morning a national bakery agreed to pay a farmer $7.10 a bushel for 5.000 bushels of wheat that th farmer will deliver to the bakery four months from now. Payment will be made at the time of delivery. Wha this legally binding agreement called? A. Forward contract B. Spot contract C. Swap D. Call option contract E. Futures contract