b. Orange Chemicals Limited (OCL) is an all-equity firm with $50 million in excess cash this year. Currently, it has 10 million shares in issue. Other firms with similar business risk have an unlevered cost of capital of 10%. From next year, OCL will be generating additional free cash flows of $40 million per year in perpetuity which it intends to distribute as regular dividends. OCL's board of directors are considering whether to distribute the current $50 million in excess cash as a special dividend or to use it to repurchase OCL's shares. Assume that you own 2500 shares of OCL's stock and OCL uses the entire $50 million to pay a special dividend. Suppose you are unhappy with OCL's decision and would prefer that OCL used the excess cash to repurchase shares. Would you have to buy or sell shares to undo the effect of the payment of special dividend? How many shares would you have to buy or sell? [20 Marks] b. Orange Chemicals Limited (OCL) is an all-equity firm with $50 million in excess cash this year. Currently, it has 10 million shares in issue. Other firms with similar business risk have an unlevered cost of capital of 10%. From next year, OCL will be generating additional free cash flows of $40 million per year in perpetuity which it intends to distribute as regular dividends. OCL's board of directors are considering whether to distribute the current $50 million in excess cash as a special dividend or to use it to repurchase OCL's shares. Assume that you own 2500 shares of OCL's stock and OCL uses the entire $50 million to pay a special dividend. Suppose you are unhappy with OCL's decision and would prefer that OCL used the excess cash to repurchase shares. Would you have to buy or sell shares to undo the effect of the payment of special dividend? How many shares would you have to buy or sell? [20 Marks]