Question
Suppose that Chrome Corp. has announced it is going to repurchase stock instead of paying out dividends. What effect will the repurchase have on an
Suppose that Chrome Corp. has announced it is going to repurchase stock instead of paying out dividends. What effect will the repurchase have on an investor who currently holds 100 shares and sells 5 of those shares back to the company in the repurchase at the marketprice per share of $13.4(i.e., what are the values of the investor's shares and cash)?Enter your answers rounded to 2 DECIMAL PLACES.
- What will be the value of the investor's shares after the share repurchase?
- What will be the value of the investor's cash after the share repurchase?
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Smith and Roberson Business Law
Authors: Richard A. Mann, Barry S. Roberts
15th Edition
978-0538473637
