August Ltd has equity capital amounting to N$350 million comprising ordinary share capital N$70million and retained earnings of N$280 million. The par value of a fully paid up share is N$10. August Ltd has a profit after tax for the year just ended of N$87.5 million. The current market price of the share is N$110 and the dividend ratio is 60%. Debt amounts to N$420 million. (d) Suppose the company decides to buy back shares worth N$41.8 million at the current market price. Explain the effect of this re-purchase on : (i) Equity capital (ii) Market price of the share (iii) Dividend per share