Cash-2-Day Company currently trades for $20. Analysts regard it as fai

Cash-2-Day Company currently trades for $20. Analysts regard it as fairly valued at its current price. The company has announced that it intends to spend $200.10 million on an open market repurchase.

Assume that the company is able to repurchase shares at a price of $15. There are 400 million shares outstanding prior to the repurchase. What fraction of shares does the company repurchase?
A) 3.34%
B) 4.35%
C) 5.35%
D) 6.35%
E) 7.35%

ANSWER

C