BU283 Lecture Notes - Lecture 2: Efficient-Market Hypothesis, Stock Valuation, Shares Outstanding
Document Summary
Lo3: find the value of a common share: repurchases. Total dollar value of cash dividends and repurchases by u. s. listed. Total dollar value of cash dividends and repurchases by canadian listed companies. An alternative way to distribute cash to shareholders; Especially good for firms with clienteles that prefer capital gains. Repurchased shares are cancelled (no longer outstanding) 3 kinds: open market repurchase (normal course issuer bid, buy shares at market price (less than 5%) Fixed-price offer (substantial issuer bid: buy target % at premium to market price, dutch auction. Shareholders invited to make offers to sell to firm inside of prescribed range (min and max). Cash mart inc. has one asset: . There are 10 shareholders who each hold 10 shares. It will buy one share from each shareholder. (this symmetry is unnecessary but makes every shareholder identical. ) What is the share price before the repurchase: sh. 9, , , , none of the above.
