Problem 1: Stock basics (4 points) Tucson Hat Company (THC) decides to pay a dividend of $100m to its shareholders. There are 250m shares outstanding, and the price-per-share the moment before the dividend is paid is $20. (a) How much money will an investor who owns $25,000 worth of THC stock (before the dividend) receive in cash from the dividend? Amount received: (b) What will the per-share price of THC be the moment after the dividend is paid, assuming nothing else changes in that moment? After-dividend price: (c) If THC wanted to use the $100m to repurchase shares instead of pay a dividend, how many shares could they buy? Number of shares: (d) If an investor who owns $25,000 worth of THC stock (before the repurchase) wants to get the same cash today as they would have from the dividend in part (a), how many shares would he/she have to sell? Number of shares