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Dividend decision
A co has outstanding 100000 sh of rs 10 each,currently selling @ 25 each.if the co. buy back 2000 sh at mkt price,then what will be the mkt price after buy back.pls show calculation and also expl logically?
Thanks
Replies (1)
market price after buy back will remain same (assuming other factors constant) .....
=(100000*25) - (2000*25) / 100000-8000
=25
Reason :- Because shares are bought back at market price.......but if shares are bought back at other price than market price then price may have changed.........
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