How Stock Repurchases Differ from Dividends: You Purchased 3,000 Shares

question 66

Multiple Choice

How stock repurchases differ from dividends: You purchased 3,000 shares of Space Apparition Co. four years ago at $40 per share You have just received a mailing from the company announcing a fixed-price tender offer stock repurchase at $70 per share. Capital gains are taxed at 20 percent. If you participate in the repurchase, how much will you receive?

• A) $31,500
• B) $192,000
• C) $178,000
• D) $210,000

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