Multiple Choice
Assume that you own 2500 shares of Omicron stock and that Omicron uses the entire $50 million to repurchase shares.Suppose you are unhappy with Omicron's decision and would prefer that Omicron used the excess cash to pay a special dividend.The number of shares that you would have to sell in order to receive the same amount of cash as if Omicron paid the special dividend is closest to:
A) 275
B) 310
C) 125
D) 250
E) 175
Correct Answer:
Verified
Correct Answer:
Verified
Q50: What is the difference between an open
Q52: When a firm repurchases shares,the supply of
Q53: Corporations enjoy a tax advantage associated with
Q54: Because _ are seen as an implicit
Q56: A firm has $300 million of assets
Q57: Firms may retain large amounts of cash
Q58: Assume that Omicron uses the entire $50
Q59: If Luther decides to pay the dividend
Q60: Dividend payments that are the result of
Q89: In perfect capital markets, buying and selling