1. A company has 35,000 shares of stock outstanding at a price per share of $25. The company believes that the stock is currently underpriced and has decided to repurchase $300,000 worth of shares. After the repurchase, there will be _____ shares outstanding at a market price of _____ per share.
2. A 7.6 percent corporate coupon bond is callable in five years for a call premium of one year of coupon payments. Assuming a par value of $1,000, what is the price paid to the bondholder if the issuer calls the bond?