11. Payout policy in perfect capital markets (S15.2) Go back to the first Rational Demiconductor balance sheet. Now assume that Rational wins a lawsuit and is paid $1 million in cash. Its market capitalization rises by that amount. It decides to pay out $2 per share instead of $1 per share. Explain what happens to Rational’s stock price over the period of the announcement and over the period of the payment if the payout comes

(a) as a cash dividend or

(b) as a share repurchase.