A Firm Has 500 Stockholders, Each of Whom Own $100

question 23

Multiple Choice

A firm has 500 stockholders, each of whom own $100 in shares. If the firm uses $10,000 to repurchase shares, how many stockholders would remain, and what would be the value of
Their shares?

• A)400 shareholders would each own shares worth $100.
• B)400 shareholders would each own shares worth $120.
• C)500 shareholders would each own shares worth $80.
• D)400 shareholders would each own shares worth $80.