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How a Share Buy-Back Happens: ABC Co Has 3 Million

Question 46

Multiple Choice

How a share buy-back happens: ABC Co has 3 million shares outstanding. The shares are currently selling for $40. If the company buy-backs $10 million at market prices, approximately how much will the shares be worth after the buy-back? Ignore tax.


A) $40
B) $38
C) $42
D) $36

Correct Answer:

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