Question: Hors dAge Cheeseworks has been paying a regular cash dividend of $4.80 per share each year for over a decade. The company is paying

out all its earnings as dividends and is not expected to grow.

There are 118,000 shares outstanding selling for $80 per share. The company

Hors dAge Cheeseworks has been paying a regular cash dividend of $4.80 per share each year for over a decade. The company is paying out all its earnings as dividends and is not expected to grow. There are 118,000 shares outstanding selling for $80 per share. The company has sufficient cash on hand to pay the next annual dividend. Suppose that, starting in year 1, Hors d'Age decides to cut its cash dividend to zero and announces that it will repurchase shares instead

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