1.A company has 8 million shares outstanding. It offers to repurchase 2 million shares at $30 per share; the current market price of the stock is $25. Management controls 500,000 shares and does not...

1.A company has 8 million shares outstanding. It offers to repurchase 2 million shares at $30 per share; the current market price of the stock is $25. Management controls 500,000 shares and does not participate in the repurchase. What is the signaling cost of the repurchase if the true value of the stock is $20? If the true value of the stock is $29? 2.Do open-market share repurchases meet the requirements of achieving credible signaling?