Hors d'Age Cheeseworks has been paying a regular cash dividend of $12 per share each year for more than a decade. The company is paying out all its earnings as dividends and is not expected to grow. There are 84,000 shares outstanding selling for $96 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. a. Is there any immediate stock price reaction? Ignore taxes, and assume that the repurchase program conveys no information about operating profitability or business risk. Yes O No b. How many shares will Hors d'Age purchase? (Enter your answer as a whole number.) Answer is complete but not entirely correct. Number of shares 10,500 X c. Project future stock prices for both the old and new policies for years 1, 2, and 3. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Answer is complete but not entirely correct. $ Price year 1 Price year 2 Price year 3 $ 84.00 X 88.20 X 92.61 $ Hors d'Age Cheeseworks has been paying a regular cash dividend of $12 per share each year for more than a decade. The company is paying out all its earnings as dividends and is not expected to grow. There are 84,000 shares outstanding selling for $96 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. a. Is there any immediate stock price reaction? Ignore taxes, and assume that the repurchase program conveys no information about operating profitability or business risk. Yes O No b. How many shares will Hors d'Age purchase? (Enter your answer as a whole number.) Answer is complete but not entirely correct. Number of shares 10,500 X c. Project future stock prices for both the old and new policies for years 1, 2, and 3. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Answer is complete but not entirely correct. $ Price year 1 Price year 2 Price year 3 $ 84.00 X 88.20 X 92.61 $