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Calculate the number of shares outstanding at end of year

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Question - Company ABC has 100 shares outstanding and share price of $100. It earns $1,000 per year and has in the past paid out all this as dividends. It now announces that it will use all $1,000 to repurchase its shares instead of paying dividends. Calculate the number of shares outstanding at the end of year 1, after the first share repurchase.

Reference no: EM132934399

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