Gemma Jones Owns 2000 Shares of Haydn Inc

question 54

Multiple Choice

Gemma Jones owns 2000 shares of Haydn Inc.share which is currently selling for $18 per share.If the company repurchases 10% of its outstanding shares at $18 per share and Gemma chooses not to sell any shares back to the company,

• A)the value of her shares will stay the same and her percentage ownership of the company will increase by 10%.
• B)her investment in the company and her percentage of ownership will stay the same.
• C)her investment in the company will decrease by $3600 and her percentage of ownership will stay the same.
• D)the value of her remaining shares will stay the same and her percentage of ownership will increase by 11.11%.

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Definitions:

Product Substitutes

Alternative goods or services that consumers can choose as replacements for another item, usually because they fulfill similar needs or functions.

Buying Power

The capacity of individuals or groups to purchase goods and services, often influenced by income, credit, and economic conditions.

Market Segment

A group of consumers or organizations sharing one or more characteristics that cause them to have similar product and/or service needs.

Dog Grooming

The process of cleaning and hygienic care for dogs, often involving hair trimming, nail clipping, and bathing.