2. A firm has 25,000 shares outstanding and the ex-dividend date is tomorrow. The company has a net income of $26,000. They will also use $50,000 in cash to pay those dividends tomorrow. Use the information on the market value halance sheet helow to ancwer a \& h. a. By how much will the stock price drop as the result of the firm paying dividends? (Hint: You need to calculate the stock price today and tomorrow.) (2) b. (True/False): As a shareholder, it is better to buy the stock today so that you can earn the dividend payment which will be paid tomorrow. (1) c. Calculate the EPS and PE of the firm after they pay $50,000 in dividends. (2) d. Calculate the EPS and PE of the firm if they decide to use $50,000 to repurchase stock instead. (2)