Multiple Select Question Select all that apply When a start-up company receives venture capital, it in return: will give up a substantial portion of the company's equity to the will retain complete control of the company and only report to th will probably give several seats on the company's board of direct continue to operate the company without any interference from t may agree to let the venture capitalist appoint one or more memb Need help? Review these concept resources.

Problem 15-15 Repurchases and the DCF model Hors d'Age Cheeseworks has been paying a regular cash dividend of $5.10 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 116,000 shares outstanding selling for $85 per share The company has sufficient cash on hand to pay the next annual dividend. Suppose that, starting in year 1 , Hors d'Age decilies to cut its cash dividend to zero and announces that it will repurchase shares instead. a. What is the immediate stock price reaction? Ignore taxes, and assume that the repurchase program conveys no information about operating profitability or business risk. b. How many shares will Hors d'Age purchase? c. Project and compare future stock prices for the old and new policies. Complete this question by entering your answers in the tabs below. Project and compare future stock prices for the old and new policies. Note: Do not round intermediate calculations. Round your old policy answers to the nearest whole number and your new policy answers to 2 decimal places