B10. (Cash versus homemade dividends) Refer to Figures 18-4 and 18-5. A firm 8,000 shares outstanding that are worth $100 each. The firm's shareholders desire a hal Ivi 1- dend of $20 per share. Assume a perfect capital market. a. Sup pays a dividend of $20 per share and sells new shares to raise pose the firm $160,000 to replace the cash it paid out. Show that these steps do not alter the wealth ers b. Suppose instead the shareholders raise $160,000 by selling some of their own shares of the original shareholders. What percentage of the firm do the original sharehold end up owning How many shares must they sell: Show that the two dividend alternatives leave them equally well-off. B10. (Cash versus homemade dividends) Refer to Figures 18-4 and 18-5. A firm 8,000 shares outstanding that are worth $100 each. The firm's shareholders desire a hal Ivi 1- dend of $20 per share. Assume a perfect capital market. a. Sup pays a dividend of $20 per share and sells new shares to raise pose the firm $160,000 to replace the cash it paid out. Show that these steps do not alter the wealth ers b. Suppose instead the shareholders raise $160,000 by selling some of their own shares of the original shareholders. What percentage of the firm do the original sharehold end up owning How many shares must they sell: Show that the two dividend alternatives leave them equally well-off