ABC Ltd has a market capitalization of ₹1 billion. It has ₹100 million in cash and the balance

₹900 million in other assets. There are 10 million shares outstanding, each valued at ₹100.

What will be the impact on ABC’s stock price and the wealth of its shareholders of each of the following decisions? Consider each decision separately.

a. The company pays a cash dividend of ₹10 per share.

b. The company repurchases 1 million shares.

c. The company pays a 10 per cent stock dividend.

d. The company has a two-for-one stock split.

e. The company invests ₹100 million in a project whose returns are equal to the firm’s cost of capital.