Answer the question based on Miller and Modigliani (MM) Dividend Model

Investor Miss Chan owns 1,000 shares of The ABC Companys common stock and its current market price per share is $70/share. The company declares to pay $20 dividend per share to its shareholders.

1. What will be the market price per share on ex-dividend date?

2. How much cash dividend, in total, will Miss Chan receive on the payment date?

3. However, Miss Chan prefers $10 dividend per share (or $10,000 in total) paid by The ABC Company. To get her desired cash flow, should Miss Chan create homemade dividend or undividend by himself?

Briefly explain how she can do it on ex-dividend date. Your answer must indicate how many shares that Miss Chan should buy/sell on ex-dividend date.

4. Based on the above, is the dividend policy of a firm relevant to the firms value in a perfect capital market? No explanation is required.