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A firm has 7,000 outstanding shares with current value of 10 per share. Planned dividend is 5 per share. What is the ex-dividend share price?

A firm has 7,000 outstanding shares with current value of 10 per share. Planned dividend is 5 per share. What is the ex-dividend share price? How much is the share price if the company decides to use the cash it had originally earmarked for dividend for a share repurchase instead?

A. 5, 10

B. 10, 5

C. 8, 10

D. 2, 12

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