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Sandy currently owns 200 of the 100,000 outstanding shares of Franktown Industries which have a current price of $40.78. Franktown has excess cash that it

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Sandy currently owns 200 of the 100,000 outstanding shares of Franktown Industries which have a current price of $40.78. Franktown has excess cash that it intends to return to shareholders and no positive NPV investment projects. Franktown announces that it will repurchase up to 10,000 shares of at $42.00 per share. If Sandy believes that the shares are undervalued, even after the repurchase announcement should she participate in the repurchase? She is indifferent between participating in the repurchase or not Yes, she should sell all of her shares in the repurchase Yes, she should sell some of her shares in the repurchase No, she should not participate in the repurchase

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