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GeKay stock is worth $100, or $80, or $60. Investors believe that each case is equally likely so that the current share price is the average, namely $80. Suppose Mr. Satanak, the company CEO, announces that he will sell most of his holdings of the stock to diversify (and investors believe his motivation). Diversifying is known to be worth 10% of the share price ---that is, the CEO would be willing to receive up to 10% less than the shares are worth to achieve the benefits of diversification. a.If investors believe that Mr. Satanak knows the true value of the stock, how will the share price change (be precise here)if he tries to sell? (Assume that any attempt to sell is immediately observable by investors).b. If he actually goes ahead and sells (for the above reason 16a.), what must be the true share price? Explain briefly but clearly and concisely using complete sentences.
An original United States silver dollar from the late 1800s consists of about 24 grains of silver. Suppose that at current prices, the silver content of this coin is worth $2.25.
Suppose cabela has 2 classes of shares. Preferred and common, Cabela has 2000 shares of preferred, 4000 shares of common outstanding shares. The preferred class is 7% cumulative pr
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I would like to know if I can get some help completing my quiz for my finance class. The quiz consist of 10 questions
Define depreciation expense as it appears on the income statement.How does depreciation affect cash flow? Accounting depreciation is the provision of an asset's initial cost ov
I wanna know how much u cost for the solution of my question (problem)
The traditional view of credit risk relates to borrowers, firms, individuals, or financial institutions. Nevertheless, more and more specialized finance transactions deal with str
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