Chandler Corporation has 1 million shares outstanding.The current price per share is $20.If the company decides to use $2 million dollars to buy back shares at the market price,the company will have ________ shares outstanding worth approximately ________.Assume that the price does not change during the buyback period.

Question

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Chandler Corporation will buy back 100,000 shares ($2 million / $20 per share), leaving 900,000 shares outstanding. The price per share remains $20 as assumed.

Chandler Corporation Has 1 Million Shares Outstanding