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4.3 IBN Inc. currently has 1,000 shares outstanding with a total market value of $42,000. It expects cash flows from operations to be $10,000 next

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4.3 IBN Inc. currently has 1,000 shares outstanding with a total market value of $42,000. It expects cash flows from operations to be $10,000 next year. It decides to finance a new project that requires an initial cost of $8,000. Assume that the firm can issue new equity to raise additional capital and assume the capital market is perfect. Calculate the total dollar dividend payout by the firm, the dollar amount of new equity issued, and the shares outstanding after dividend payout, and the value of the firm after the dividend payment under each of two dividend policies: (a) if the firm adopts a $2 dividend per share (DPS) policy; (b) if the firm adopts a $4 dividend per share policy. ( 8 points)

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