Final answer:
Company X's market capitalization will remain at 17 million euros after repurchasing 97,000 shares, assuming the stock price remains unchanged immediately after the buyback. The stock price could potentially change due to various market factors but is not directly impacted by the repurchase in the short term.
Step-by-step explanation:
Company X currently has a market capitalization of 17 million euros (1 million shares at 17 euros each). After repurchasing 97,000 shares, the company will have 903,000 shares outstanding. The market capitalization post-repurchase will still be 17 million euros, assuming the share price does not change during the repurchase. Essentially, market capitalization is not directly affected by share repurchases since it's reflecting the value the market gives to a company, which is theoretically the same before and after a buyback. However, the share price could potentially be impacted by the repurchase due to factors like market perception, the supply-demand balance of shares, or changes in ownership concentration, although it typically remains the same immediately after the transaction.
Regarding the stock price, while theoretically it might not change immediately after the repurchase, in a real-world scenario, the stock price can be influenced by numerous factors including investor perception, demand for the stock, and company performance. Therefore, predicting the exact stock price post-repurchase is not straightforward.