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A firm Repurchase Inc has decided to buy back shares worth INR96 crores from the market...

A firm Repurchase Inc has decided to buy back shares worth INR96 crores from the market using the open market route. The outstanding shares of the firm is 50,00,000 and the current value of this firm is INR 1200 crores. How many shares will be bought back by this firm?

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Expert Solution

PRICE PER SHARE = 1200 CRORES/5000000

PRICE PER SHARE = 12,000,000,000/ 5000000 = 2400

BUYBACK AMOUNT = 96 CRORES = 960,000,000

NO OF SHARES REPURCHASED = 960,000,000/ 2400 = 400000

Answer : 400,000 shares [Thumbs up please]

jeff jeffy answered 2 years ago
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