Calculate the number of shares outstanding at the end of


Company X has 100 shares outstanding. It earns $1,000 per year and announces that it will use all $1,000 to repurchase its shares in the open market instead of paying dividends. Calculate the number of shares outstanding at the end of year 1, after the first share repurchase, if the required rate of return is 10%.

110.0
100.0
90.91
89.0

 

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Finance Basics: Calculate the number of shares outstanding at the end of
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