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Author Question: Climax Motors Corp. is an all equity company with 40M shares outstanding. Climax's stock trades for ... (Read 55 times)

mynx

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on: Apr 25, 2021
Climax Motors Corp. is an all equity company with 40M shares outstanding. Climax's stock trades for $25. Climax has too much cash. The CEO, Trudy Ryder, wants to distribute the excess cash with an open market stock repurchase. She is contemplating buying back $10.9M worth of shares at a price of $25. Ricky Bobby owns 4 million shares of Climax. He purchased his shares before the repurchase for $25. If Ricky does not sell any shares during the repurchase, then what is his change in wealth from before to after the repurchase?
◦ -$2.50 million
◦ $0
◦ $2.00 million
◦ $2.50 million
◦ $5.00 million
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by mynx on Apr 25, 2021

honnalora

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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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mynx

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

ultraflyy23

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

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