Question #18
Reading: Reading 15 Analysis of Dividends and Share Repurchases
PDF File: Reading 15 Analysis of Dividends and Share Repurchases.pdf
Page: 8
Status: Unattempted
Question
The following information is from the 10-k of Laura's Chocolates, Inc.(LC), a maker of nut- based toffees. Cash 25,000,000 Share price 40.00 Shares outstanding (prior to transaction) 20,000,000 LC decides to spend $20 million repurchasing common stock. What is the value of a share of stock after the share repurchase?
Answer Choices:
A. 40.00
B. 45.00
C. 35.00
No explanation available for this question.