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Unformatted text preview: price. Given the chart below, what will be the total cost for the company to repurchase all 1 million shares? Price Shares Tendered (thousands) $17.00 100 $17.75 125 $18.50 150 $19.00 175 $19.75 200 $20.00 250 $20.25 325 $20.75 250 3. Assume you are in a simplified world with no market imperfections (i.e., no taxes, no signaling effects, no agency problems, no irrational investors, no transaction costs). JKL Corporation has 1,000 shares outstanding currently trading at $100 per share. JKL is considering one of the four options below. What will be the estimated price per share of JKL Corp. stock following each transaction? (Consider each option separately, not in succession.) A cash dividend of $5 per share ______ A stock repurchase of $10,000 ______ A two-for-one stock split ______ A 10% stock dividend ______ 2...
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- Fall '10