A company has a stock price of $42 and 10 million shares outstanding. This company has decided to distribute $4.2 million of excess cash through a share repurchase. Assume perfect capital markets.

a) What would be the stock price after the transaction?

b) Now consider investor A who owns 2,000 shares. Given that the company went for a share repurchase, how could she create a home made dividend, for the amount she would have received had the company distributed the excess cash through dividends?