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

question 63

Multiple Choice

How stock repurchases differ from dividends: You purchased 3,000 shares of Purple Stuff Beverage Co. four years ago at $30 per share. You have just received a mailing from the company announcing 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

---

Definitions:

Scientific Observations

Careful and systematic recording of phenomena or experimental results in the context of scientific research.

Accept on Faith

The act of believing in something without requiring empirical evidence or proof.

Empiricism

A philosophical theory or approach emphasizing the importance of observation and experiment in the acquisition of knowledge.

Observations

The act of monitoring or recording systematically selected variables or phenomena to gather data for analysis.