Assume that Omicron uses the entire $50 million to repurchase shares.The number of shares that Omicron will have outstanding following the repurchase is closest to:

Question

Quizplus · Accepted Answer

To find the number of shares that Omicron will have outstanding following the repurchase, we divide the total amount spent on repurchasing shares by the repurchase price per share. Since the stock price after the announcement of the repurchase remains unchanged, the repurchase price per share is still $52.50.

Number of shares repurchased = $50,000,000 / $52.50 per share = 952,381 shares (approx)

Therefore, the number of shares that Omicron will have outstanding following the repurchase = 10,900,000 - 952,381 = 8,947,619 shares (approx)

So, the closest answer choice is D) 8.9 million.

Assume That Omicron Uses the Entire $50 Million to Repurchase