Galt Industries Has 125 Million Shares Outstanding and Has a Marginal

question 8

Multiple Choice

Galt Industries has 125 million shares outstanding and has a marginal corporate tax rate of 35%.Galt announces that it will use $75 million in excess cash to investors repurchase shares.Shareholders had previously assumed that Galt would retain this excess cash permanently.The amount Galt's share price can be expected to change upon this announcement is closest to:

• A) $0.21
• B) $0.24
• C) $0.36
• D) $0.39

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Definitions:

Autism

A developmental disorder characterized by difficulties in social interaction, communication, and by restricted or repetitive patterns of thought and behavior.

Genetically Influenced

Traits or conditions that are affected by one's genetic makeup or heredity.

Maturation

The process of development in which an individual matures or reaches full functionality.

Physical Characteristics

The observable attributes or features of an organism or object, such as size, shape, color, and structure.