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 in the following table: Offer Price Total Shares Tendered 56.00 190,000 56.15 355,000 56.30 490,000 56.45 635,000 56.60 780,000 56.75 920,000 a) What is the average price that the company will pay to buy back shares? $56.60 b) Is the offer oversubscribed or undersubscribed? oversubscribed, greater c) What percentage of the shares offered by stockholders that will be repurchased? (enter your respose here)
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 in the following table: Offer Price Total Shares Tendered 56.00 190,000 56.15 355,000 56.30 490,000 56.45 635,000 56.60 780,000 56.75 920,000 a) What is the average price that the company will pay to buy back shares? $56.60 b) Is the offer oversubscribed or undersubscribed? oversubscribed, greater c) What percentage of the shares offered by stockholders that will be repurchased? (enter your respose here)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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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 in the following table:
Offer Price Total Shares Tendered
56.00 190,000
56.15 355,000
56.30 490,000
56.45 635,000
56.60 780,000
56.75 920,000
a) What is the average price that the company will pay to buy back shares?
$56.60
b) Is the offer oversubscribed or undersubscribed?
oversubscribed, greater
c) What percentage of the shares offered by stockholders that will be repurchased?
(enter your respose here)
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