Gemma Jones owns 2000 shares of Haydn Inc.which is currently selling for $18 per share.If the company repurchases 10% of its outstanding shares at $18 per share and Gemma chooses to sell back 200 shares
A) her investment in the company and her percentage of ownership will each decrease by 10%.
B) her investment in the company and her percentage of ownership will stay the same.
C) her investment in the company will decrease by $3600 and her percentage of ownership will stay the same.
D) the value of her remaining shares will increase to $20 per share and her percentage of ownership will fall by 10%.
Correct Answer:
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