A firm has an excess cash flow of $4.8m. It had 3m shares outstanding and was considering paying a cash dividend, corresponding to a 40% payout. The stock traded in the market at $88.00 per share. Assume that the average investor holds 118 shares of the companys stock.

Note: The term k is used to represent thousands ( $1,000).

Required: What would be the average portfolio value after a re-purchase scenario?