10. Repurchases. Now suppose that Payout from Practice Problem 9 announces its intention to repurchase $10,000 worth of stock instead of paying out the dividend. (LO2)

a. What effect will the repurchase have on an investor who currently holds 100 shares and sells 1 of those shares back to the company in the repurchase?

b. Compare the effects of the repurchase to the effects of the cash dividend that you worked out in problem 9.