1. Answer the questions based on the table below.

Cash DividendStock RepurchasesStock DividendValue of Operations $900,000,000$900,000,000$900,000,000Value of Cash balance80,000,00080,000,00080,000,000Total value of firm $980,000,000$980,000,000$980,000,000 Debt 100,000,000 100,000,000 100,000,000 Preferred stock 80,000,000 80,000,00080,000,000Value of equity $800,000,000$800,000,000$800,000,000# of shares Before the event 40,000,000 40,000,000 40,000,000 Stock price Before the event $20 $20 $20# of shares After the event ( )( )( )Stock price After the event( )( )( )

1. The firm considers cash dividend using the cash balance of $80,000,000. i)Figure out the dividend per share.

ii)Once the cash dividend is completed, figure out the stock price.

2.The firm considers stock repurchase using the cash balance of $80,000,000.

I)Figure out how many shares this firm can repurchase.

ii)Once the stock repurchase is completed, figure out the stock price.

3)The firm considers a 25% stock dividend.

I)Figure out how many new shares this firm can issue.

ii)Once the stock dividend is completed, figure out the stock price.