You own 5,000 shares of a stock that currently sells for $30 a share. There are 2 million
shares outstanding. The firm has announced that it plans to devote $10,000,000 to a
share repurchase. Assume you do not participate in the repurchase and calculate the
total value of your investment and your percentage ownership both before and after
the repurchase.

Question

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The Answer of You own 5,000 shares of a stock that currently sells for $30 a share. There are 2 million
shares outstanding. The firm has announced that it plans to devote $10,000,000 to a
share repurchase. Assume you do not participate in the repurchase and calculate the
total value of your investment and your percentage ownership both before and after
the repurchase.

You Own 5,000 Shares of a Stock That Currently Sells