A Firm Has 1,000 Shareholders, Each of Whom Own $50

question 14

Multiple Choice

A firm has 1,000 shareholders, each of whom own $50 in shares. The firm uses $20,000 to repurchase shares. What percentage of the firm did each of the remaining shareholders own
Before the repurchase, and what percentage does each own now?

• A)0.10% before; 0.14% now
• B)0.05% before; 0.07% now
• C)0.10% before; 0.17% now
• D)0.05% before; 0.03% now

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