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Some investors think that GE s repurchase program is a raw deal for shareholders, because the company paid too much for its repurchased shares. Over
Some investors think that GEs repurchase program is a raw deal for shareholders, because the company paid too much for its repurchased shares. Over the last quarter, GE repurchased B shares at an average price of $ per share. However, at the beginning of the quarter the shares were trading for $and there were B shares outstanding Assume that you bought shares at the beginning of the quarter, sold the same percentage of shares as GE repurchased for the same price that GE paid on average and then sold your remaining shares after the repurchase was complete. What is your profit on this roundtrip investment?
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