Question: Equity, Inc. (from the previous problem) decides not to restructure, but instead decides to do something for the benefit of its shareholders. They are deciding

 Equity, Inc. (from the previous problem) decides not to restructure, but

Equity, Inc. (from the previous problem) decides not to restructure, but instead decides to do something for the benefit of its shareholders. They are deciding between issuing a $1 per share dividend or repurchasing 5,000 shares of stock. Assuming the firm begins with $250,000 cash, prepare a simple balance sheet for the firm before it makes its decision and what the balance sheet would look like as a result of each of the three choices detailed above. Also, for each of the three options, how many shares outstanding exist after the decision, and what would the new share price be

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