Weeks ago, the consumer products giant, Unilever, announced plans to buy back 700,000 shares using a Dutch

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Weeks ago, the consumer products giant, Unilever, announced plans to buy back 700,000 shares using a Dutch auction. Since then the company has solicited interest from shareholders by asking how many shares they would tender at different prices. The information they collected appears below.

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a. What is the average price that the company will pay to buy back shares?

b. Is the offering oversubscribed or undersubscribed?

c. What percentage of the shares offered by stockholders will be repurchased?

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Principles Of Managerial Finance

ISBN: 9781292400648

16th Global Edition

Authors: Chad Zutter, Scott Smart

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