Let's say previously company MMM was owned by 6 shareholders. They hold 50%, 10%, 10%, 10%, 10%, 10% of company's share respectively. Now since this company made lots of money and the biggest share holder is going to leave, the company repurchased back those 50% share with its retained earning. We have only 5 shareholders now. Then, can we say virtually those 5 shareholders hold 20% share each ?
And, if retained earning is not enough to repurchase those 50% shares, can the biggest share holder let the company borrow money to complete the purchase?
2007-10-15
09:18:52
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3 answers
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asked by
freebird
1