ge company repurchased 18 million shares of its issued and outstanding stock for $26 million
1, (1) the repurchase price should be based on the closing price on the day of the announcement, the company's repurchase price is inappropriate (2) after the repurchase the valuation rose to $105. If there is no other information about the company or the stock, it is possible that the company is operating behind the scenes, or that the banker is operating behind the scenes, or that the company and the banker are teaming up to operate behind the scenes.2. (1) The price of the stock on March 20 was $50 per share (2) After the stock dividend is paid out, you will own 160*(1+25%)=200 shares (3) The value of the stock you own both before and after the stock dividend is paid out is 8000 ∵ Value of stock before stock dividend = 160*50 = 8000 Value of stock after stock dividend = 200*(50/1.25) = 8000