Jolene's firm markets preplanning services for a mortician. She finds that most of her target market avoids discussing future funeral needs. She convinces people to invest in the firm's services through her large-scale promotional efforts

Initek Co's stock trades for $12.50. Initek has too much cash. The CEO, Bill Lumberg, wants to distribute the excess cash with an open market stock repurchase. He is contemplating buying back $5.45M worth of shares at a price of $12.50

Initek is an all equity company with 20M shares outstanding. Pete Gibb owns 2 million shares in Initek. He purchased his shares before the repurchase for $12.50. If Pete sells the same proportion of shares as the company repurchases (and receives the same price that they pay), then what is his change in wealth from before to after the repurchase? A) -$2.500 million B) -$1.250 million C) $0 D) $2.500 million E) $12.50 million

If all partners are included in the first installment of an installment liquidation, then in future installments

A) cash will be distributed according to the residual profit and loss sharing ratios. B) cash should not be distributed until all non-cash assets are converted into cash. C) vulnerability rankings for each partner should be prepared. D) a cash distribution plan must be prepared so that partners will know when they will be included in cash distributions.