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Author Question: Ewing Oil has $5B of excess cash and has announced an open market stock repurchase. Prior to the ... (Read 48 times)

fnuegbu

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on: Apr 25, 2021
Ewing Oil has $5B of excess cash and has announced an open market stock repurchase. Prior to the announcement, the stock was trading for $25 per share and there are 2.5B shares outstanding. Assume that the stock repurchase is executed at the pre-repurchase price. Sue Ellen has 100 shares of Ewing Oil. She bought the shares for $25 per share. Sue Ellen pays a tax rate of 20% on capital gains and 34% on dividends. What is Sue Ellen's after-tax wealth if she sells the same proportion of shares as Ewing repurchases, and that she receives the same price that Ewing pays? Assume that Sue Ellen sells her remaining shares after the repurchase at the price that prevails after the repurchase.
◦ $1,800
◦ $1,965
◦ $2,250
◦ $2,500
◦ $2,625
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Marked as best answer by fnuegbu on Apr 25, 2021

dlook33

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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fnuegbu

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it

AngeliqueG

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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