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Suppose an all-equity financed company has 400,000 shares of stock currently outstanding. Each share currently has...

Suppose an all-equity financed company has 400,000 shares of stock currently outstanding. Each share currently has a true value of $40. Suppose the company uses internal cash to repurchase100,000 shares of stock at the following prices: $50, $40, and $30.What will be the effect of each of these alternative repurchase prices on the final(i.e., after the market realizes the true value of shares) market price of the shares? (Ignore issues such as taxation and transactions costs).

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