You Purchased 3,000 Shares of Purple Stuff Beverage Co

question 53

Multiple Choice

You purchased 3,000 shares of Purple Stuff Beverage Co. four years ago at $30 per share. The company has announced a fixed-price tender offer stock repurchase at $36 per share. Capital gains are taxed at 15 percent. If you participate in the repurchase, how much will you receive?

• A) $18,000
• B) $91,800
• C) $105,300
• D) $108,800

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Definitions:

Quarterly Dividend

A dividend payment made by a corporation to its shareholders every three months or four times a year.

Exercise Equipment

Equipment designed specifically for physical activities to enhance strength, flexibility, or cardiovascular health.

Largest Investor

The individual or entity holding the most significant percentage of shares or investments within a company or investment pool.

Percent Increase

The ratio, expressed as a percentage, that represents the extent of growth of a quantity from its original value.