An investor owns 5,000 shares,which is 1% of a corporation's outstanding stock before a stock repurchase.The investor did not sell any of his stock during the 25,000 share repurchase.Which of the following statements is correct?
A) The investor still owns 1% of the corporation.
B) The stock's price is likely to drop by 5%.
C) The investor owns more than 1% of the corporation.
D) The investor now has 5,250 shares.
Correct Answer:
Verified
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