In October, Baxter Lorry Company was in a flush cash position and repurchased 100,000 shares of its 1.8 million shares outstanding at a price of $42.50 per share. immediately prior to the share repurchase announcement, share price was $37.00. The company was surprised that nearly 1 million shares were tendered by stockholders wanting to sell. The company had to repurchase the 100,000 shares on a pro-rata basis according to the number of shares tendered