Built Rite Corp

question 74

Multiple Choice

Built Rite Corp.is evaluating an extra dividend versus a share repurchase.In either case,$5,500 would be spent.Current earnings are $0.80 per share,and the stock currently sells for $33 per share.There are 250 shares outstanding.Ignore taxes and other imperfections.You own one share of stock in this company.If the company issues the dividend,your total investment will be worth ____ as compared to ____ if the company opts for a share repurchase.

• A)$11; $11
• B)$11; $22
• C)$11; $33
• D)$23; $33
• E)$33; $33

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Definitions:

Corner-Point Method

A method for solving graphical linear programming problems.

Mathematical Expression

A combination of numbers, operations symbols, and sometimes variables that represents a mathematical relationship, action, or procedure.

Linear Programming

A mathematical modeling technique used to achieve the best outcome in a given mathematical model for some list of requirements represented as linear relationships.

Decision Variables

Choices available to a decision maker.