Suppose management is expected to make a fixed-price tender offer to repurchase half of the stock at

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Suppose management is expected to make a fixed-price tender offer to repurchase half of the stock at a 20 percent premium. How, if at all, would that affect today’s market price of the company’s shares?

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Principles of Corporate Finance

ISBN: 978-0072869460

7th edition

Authors: Richard A. Brealey, Stewart C. Myers

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Question Posted: Jun 09, 2011 04:34 AM

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Suppose management is expected to make a fixed-price tender offer to repurchase half of the stock at

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Generally a share repurchase is viewed as a signal that a Ma...View the full answer

Principles of Corporate Finance

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