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18 May, 08:11

How much would it cost for Chester Corporation to repurchase all its outstanding shares if the price fell by 10%? Assume no brokerage fees.

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  1. 18 May, 08:38
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    It would cost 10% less than the stock's issue price for Chester Corporation to repurchase all its outstanding shares if the price fell by 10% assuming there is no brokerage fee. This situation called the stock repurchase or purchasing the Treasury stock. The company will buy its stock at the market price.
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