Fred Handel owns 2000 shares of Haydn Inc. stock which is currently selling for $18 per share. If the company repurchases 10% of its outstanding shares at $18 per share and Fred chooses to sell back 200 shares
A) his investment in the company and his percentage of ownership will each decrease by 10%.
B) his investment in the company and his percentage of ownership will stay the same.
C) his investment in the company will decrease by $3,600 and his percentage of ownership will stay the same.
D) the value of his remaining shares will increase to $20 per share and his percentage of ownership will fall by 10%.
Answer: C
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