1. Answer the questions based on the table below.

	Cash Dividend	Stock Repurchases	Stock Dividend
Value of Operations	$900,000,000	$900,000,000	$900,000,000
Value of Cash balance	80,000,000	80,000,000	80,000,000
Total 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	80,000,000	80,000,000
Value 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 current cash balance of $80,000,000. Figure out the dividend per share. (20points)

2. Once the cash dividend is completed, figure out the stock price. (20points)

3. The firm considers stock repurchase using the current cash balance, $80,000,000. Figure out how many shares this firm can repurchase. (20points)

4. Once the stock repurchase is completed, figure out the stock price. (20points)

5. The firm considers a 25% stock dividend. How many new shares does this firm issue? (20points)

6. Once the stock dividend of 25% is completed, figure out the stock price. (20points)