Use the Information for the Question(s)below

question 15

Multiple Choice

Use the information for the question(s) below. As an oil refiner,you are able to produce $76 worth of unleaded gasoline from one barrel of Alaska North Slope (ANS) crude oil.Because of its lower sulfur content,you can produce $77 worth of unleaded gasoline from one barrel of West Texas Intermediate (WTI) crude.
-Assuming you just purchased 10,000 Bbls of WTI crude at the current market price,the added benefit (cost) to you if you were to refine this crude oil and sell the unleaded gasoline is closest to:

• A)$730,600.
• B)$39,400.
• C)$770,000.
• D)-$39,400.

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Definitions:

Tender Offer

A general offer to stockholders to purchase shares at a specified price, usually for the purpose of acquiring a company.

Treasury Shares

Treasury shares are shares that were once part of the float and sold to the public but have since been bought back by the issuing company, reducing the amount of outstanding stock on the market.

Shareholders

Individuals or entities that own one or more shares of stock in a public or private corporation, granting them ownership interests and voting rights.

Repurchase Price

The price at which an open-end mutual fund or a security that is bought back by the issuer, often a part of the repurchase agreement's terms.