Your company’s stock is selling for $5 per share and there are 100 million shares outstanding....
Your company’s stock is selling for $5 per share and there are 100 million shares outstanding. It announces a one-time $50 million stock repurchase. What dividend could the company have paid instead? What kind of a dividend would that be?
Homework Answers
Dividend that the company could have paid = The amount spent on repurchase
= $ 50 million
This would be a cash dividend since the company would be paying cash instead of buying own stocks.
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