BU283 Lecture Notes - Lecture 11: Accrual, Share Capital, Shares Outstanding
Document Summary
Total dollar value of cash dividends and repurchases by u. s listed companies. An alternate 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) What is each shareholder"s proportionate ownership share of the company after the repurchase: 9, 10, 11, 12% Na = nb nr = 100 10 = 90. What is the stock price after the repurchase if the company pays. for each repurchased share: sh. 90, . 00, . 01, . 10. Pa = ea/90 = /90 = . Cash mart inc. has one asset: . There are 10 shareholders who each hold 10 shares.
