The Alpha Ltd. has reported the following financial data:

Net Earnings	3,00,000
Shares Outstanding	10,00,000
Earnings per share	3
Market Price per share (ex-dividend)	40
Expected dividend per share	2

The company is considering to distribute Rs 20,00,000 as dividends to exsisting shareholders either as cash or through buyback of outstanding shares. If the shares are repurchased, the firm would make an offer for 47,619 shares at a price of Rs 42. Alternatively, the firm could pay a dividend of rs 2 per share. After the payment of the dividends each share will sell at Rs 40 per share. Ignoring taxes, what impact will the choice of a dividend payout or share buyback plan have on the wealth of the shareholders? If the shareholders are in a high marginal tax bracket, which alternative will be favoured by them?