please only answer question#8

7. Regular Dividends The balance sheet for Tempest, Inc., is shown here in market value terms. There are 19,000 shares of stock outstanding. Market Value Balance Sheet Cash Fixed assets Total $120,000 476,600 $596,600 Equity Total $596,600 $596,600 The company has declared a dividend of $1.15 per share. The stock goes ex dividend tomorrow. Ignoring any tax effects, what is the stock selling for today? What will it sell for tomorrow? What will the balance sheet look like after the dividends are paid? 8. Share Repurchase In the previous problem, suppose the company has announced it is going to repurchase $21,850 worth of stock instead of paying a dividend. What effect will this transaction have on the equity of the firm? How many shares will be outstanding? What will the price per share be after the repurchase? Ignoring tax effects, show how the share repurchase is effectively the same as a cash dividend. once sheet for Briggs Manufacturing