What would be the value of the shares

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Question 1: A firm has 500 stockholders, each of whom own $100 in shares. If the firm uses $10,000 to repurchase shares, how many stockholders would remain, and what would be the value of their shares?

Question 2: 500 shareholders would each own shares worth $80 this is answer is wrong, can you explain why?

Reference no: EM132494069

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