Natsam Corporation has $325million of excess cash. The firm has no debt and $550 million shares outstanding with a current market price of $11 per share. Suppose the board decided to do aâ one-time shareâ repurchase, butâ you, as anâ investor, would have preferred to receive a dividend payment. How can you leave yourself in the same position as if the board had elected to make the dividend paymentâ instead?
Which of the following is true regarding the effect of aâ one-time share repurchase on the stockâ price? â(Select the best choiceâ below.)
A.Anâ open-market share repurchase decreases the stock price because theâ firm's assets decline by the amount of the purchases of the shares.
B.Anâ open-market share repurchase has no effect on the stockâ price, but the stock price is not the same as theâ cum-dividend price if a dividend were paid instead.
C.Anâ open-market share repurchase increases the stock price due to the decrease in shares in the marketplace.
D.Anâ open-market share repurchase has no effect on the stock price.
To receive yourâ dividend, the percentage of your shares you should sell is___________% â(Round to two decimalâ places.)
Natsam Corporation has $325million of excess cash. The firm has no debt and $550 million shares outstanding with a current market price of $11 per share. Suppose the board decided to do aâ one-time shareâ repurchase, butâ you, as anâ investor, would have preferred to receive a dividend payment. How can you leave yourself in the same position as if the board had elected to make the dividend paymentâ instead?
Which of the following is true regarding the effect of aâ one-time share repurchase on the stockâ price? â(Select the best choiceâ below.)
A.Anâ open-market share repurchase decreases the stock price because theâ firm's assets decline by the amount of the purchases of the shares.
B.Anâ open-market share repurchase has no effect on the stockâ price, but the stock price is not the same as theâ cum-dividend price if a dividend were paid instead.
C.Anâ open-market share repurchase increases the stock price due to the decrease in shares in the marketplace.
D.Anâ open-market share repurchase has no effect on the stock price.
To receive yourâ dividend, the percentage of your shares you should sell is___________% â(Round to two decimalâ places.)
