Cosmic crew & Co has 3 million shares outstanding. The shares are currently selling for $40. If the firm repurchases $10 million worth of shares at market prices, approximately how much will the stock be worth after the repurchase? Ignore taxes.

Question

Quizplus · Accepted Answer

The stock price remains the same at $40 after the repurchase because the question does not provide any information that would affect the stock price, such as changes in the company's earnings or market conditions. The repurchase reduces the number of shares outstanding but does not directly affect the price per share.

Cosmic Crew & Co Has 3 Million Shares Outstanding