Author Question: Willys-Overland Motors Inc. produces 44 quarter-ton trucks. Selected financial information for ... (Read 81 times)

@Brianna17 · **on:** Apr 25, 2021

Willys-Overland Motors Inc. produces 4×4 quarter-ton trucks. Selected financial information for Willys-Overland is provided in the table below.
The CEO, John Willys, wants to distribute $1B of cash using a stock repurchase. He intends to repurchase 15 million shares at a price of $70. Mr. Willys owns 22.5 million shares (worth $1,395 million before the repurchase). He does not plan to sell any of his shares during the repurchase. What is his wealth after the repurchase?

Willys-Overland Motors Inc.

Selected Financial Information

Stock Price	$62
Cash	$1,000M
Shares Outstanding	150M
Debt	$0

◦ $1,375M
◦ $1,280M
◦ $1,385M
◦ $1,390M
◦ $1,395M

cloudre37 · **Reply #1 on:** Apr 25, 2021

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