A firm can repurchase shares through a(n)_________ in which it offers to buy shares at a...

A firm can repurchase shares through a(n)_________ in which it offers to buy shares at a prespecified price during a short time period--generally within 20 days.

a. tender offer

b. open market share repurchases

c. targeted repurchase

d. dutch auction share repurchase

Solutions

Expert Solution

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

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?

2. The stock repurchase is a decision by companies to buy their own shares in an...

2. The stock repurchase is a decision by companies to buy their own shares in an effort to help boost earnings per share and stock prices. A recent article published on WSJ (https://www.wsj.com/articles/companies-mull-suspending-ramping-up-share-buyback-plans-amid-coronavirus-11584477343) reported that finance chiefs are debating whether to make share repurchases or hold on to cash as stock prices fall on fears surrounding the coronavirus pandemic since the S&P 500 has plummeted about 25% from Feb. 18. Some companies appear to be taking advantage of the down...

It receives bids to buy shares from investors A through F. The number of shares each...

It receives bids to buy shares from investors A through F. The number of shares each would buy and the price they offer to pay is below: A: 100 shares $16/share B: 300 shares $14/share C: 200 shares $10/share D: 100 shares $12/share E: 100 shares $13/share F: 400 shares $14/share The corporation will sell 1,000 shares. What will be the IPO share price? a) $14 b) $13 c) $12 d) $10

Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from...

Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price of $24,995,000, with the promise to buy them back at a price of $25,000,000. a. Calculate the yield on the repo if it has a 7-day maturity. b. Calculate the yield on the repo if it has a 21-day maturity.

A firm desires to sell stock to the public. The underwriter charges $0.4 million in fees and offers to buy six million shares from the firm at a price of $30 per share.

A firm desires to sell stock to the public. The underwriter charges $0.4 million in fees and offers to buy six million shares from the firm at a price of $30 per share. In addition, registration and audit fees total $120,000, and marketing and miscellaneous fees add up to another $65,000. The underwriter expects to earn gross proceeds per share of $36. a) What is the issuing firm's out-of-pocket dollar transaction cost to issue the stock? (10 marks) b) Immediately...

If you buy shares of Amazon on the primary market: a. You buy the shares from...

If you buy shares of Amazon on the primary market: a. You buy the shares from the Federal Reserve. b. You buy the shares from the New York Stock Exchange. c. None of the answers are correct. d. Amazon receives the money because the company has issued new shares. e. You buy the shares from another investor who decided to sell the shares

The Kim Su Company is planning to repurchase shares of common stock with the proceeds of...

The Kim Su Company is planning to repurchase shares of common stock with the proceeds of a $50,000,000 debt issue. The interest rate on the debt is expected to be 10%. Currently, Kim Su is unlevered with 12,000,000 common shares outstanding. The price-earnings ratio of the common shares is 5 on pre-tax operating income of $30,000,000. The equity has a required rate of return of 20% based on an equity beta of 1.20. Assuming the company’s tax rate is 34%,...

Explain how a repurchase changes the number of shares but not the stock price. A firm’s...

Explain how a repurchase changes the number of shares but not the stock price. A firm’s most recent FREE CASH FLOW (FCF) was $2.4 million, and its FCF is expected to grow at a constant rate of 5%. The firm’s WEIGHTED AVERAGE COST OF CAPITAL (WACC) is 14%, and it has 2 million shares outstanding. The firm has $12 million in short-term investments that it plans to liquidate and then distribute in a stock repurchase; the firm has no other...

(a) Someone offers you a security which pays $n at the end of the nth year...

(a) Someone offers you a security which pays $n at the end of the nth year until forever (i.e., it pays $1 at the end of the first year, $2 at the end of the second year, and so on). If the annually compounded interest rate is10% per year, what is the fair price of such security? (b) (Rule of 69) People in the banks have a quick way of finding outhow long it takes to double your money. The...

The William Wrigley Jr. Company had 232.441 million shares outstanding. A repurchase of shares would alter...

The William Wrigley Jr. Company had 232.441 million shares outstanding. A repurchase of shares would alter that amount. The Wrigley family controlled 21% of the common shares outstanding and 58% of Class B common stock, which had superior voting rights to the common stock.1 Assuming the Wrigley family did not sell any shares, how would the share-repurchase alternative affect the family’s voting-control position in the company?

Subjects