Tarbox Tobacco Inc

Multiple Choice

Tarbox Tobacco Inc.is an all equity company with 100M shares outstanding.Tarbox's stock last closed at $15.Tarbox has too much cash.The CEO,Walt Raleigh,wants to distribute the excess cash with an open market stock repurchase.He is contemplating buying back $225M worth of shares at a price of $15.Leaf Erickson owns 2 million shares in Tarbox.He purchased his shares before the repurchase for $15.If Leaf does not sell any shares during the repurchase,then what is his proportionate ownership afterwards?

A) 0.020
B) 0.022
C) 0.024
D) 0.026
E) 0.028