1. Natsam Corporation has $250 million of excess cash. The firm has no debt and 500 million shares outstanding, with a current market price of $15 per share. Natsam's board has decided to pay out this cash as a one-time dividend. Part A - What is the ex-dividend price of a share in a perfect capital market? A. 17 B. 15.5 C. 15 D. 14.5 1. Natsam Corporation has $250 million of excess cash. The firm has no debt and 500 million shares outstanding, with a current market price of $15 per share. Natsam's board has decided to pay out this cash as a one-time dividend. Part B - If the board instead decided to use the cash to do a one-time share repurchase, in a perfect capital market what is the price of the shares once the repurchase is complete? A. 17 B. 15.5 C. 15 D. 14.5 1. Natsam Corporation has $250 million of excess cash. The firm has no debt and 500 million shares outstanding, with a current market price of $15 per share. Natsam's board has decided to pay out this cash as a one-time dividend. Part C - In a perfect capital market, which policy, in part (a) or (b), makes investors in the firm better off? Please choose your answer from the following: a, b, or indifferent. A. pay out this cash as a one-time dividend B. use the cash to do a one-time share repurchase C. option A and B are the same D. unable to compare