a)
To determine: The additional cash after the corporate tax of Person R at the end of the year.
Introduction:
Share repurchase is an alternative method to pay the cash to a company’s investors through buy back of shares. Stock repurchase is a situation where a company purchases its own shares, which are still outstanding.
b)
To determine: The increase in the value of shares after the
Introduction:
Taxes levied on any capital gain are termed as capital gain taxes.
c)
To determine: The amount that the investor will receive when he invests $100 million on his own.
Introduction:
The interest income is the interest earned from the investments made during a particular period of time.
d)
To determine: The amount that is needed to be saved in issuance fees.
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