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b) Given the information below (in millions): Value of operation $4,000 Short-term investments $150 Debt $550 Value of preferred stock $ 50 Number of shares

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b) Given the information below (in millions): Value of operation $4,000 Short-term investments $150 Debt $550 Value of preferred stock $ 50 Number of shares 100 Demonstrate that the stock price will drop by exactly the amount of dividend per share in the model if this firm pays dividend. Assume that the firm plans to use its short-term investment account to fund the dividend payment (5 Points) c) Use the information in 2(b) above to demonstrate that the share price per stock will remain unchanged after a stock repurchase. Assume that the firm uses the its short-term investment account to fund the stock buyback. (5 Points) os Unse in 20) above mentione per seksuelle om e met

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