Answer:
percentage of ownership:
before 0.25%
after 0.30%
Value of the investment:
5,000 stock x $30 = 150,000
Explanation:
To get the currnet percentage of ownership:
portfolio stock / shares outstanding
5,000 stock / 2,000,000 = 0.0025 = 0.25%
Now, for the escenario after the repurchase:
First, how many shares were repurchased:
10,000,000 / 30 = 333,333 stock repurchased
Then, how many are outstanding:
2,000,000 - 333,33 = 1,666,667
Last, the new percentage of ownership
5,000 stock / 1,666,667 = 0.02999 = 0.30%
value of the investment:
5,000 stock x $30 = 150,000
