CASE 3 (25 points) NOS Corporation has the following market value balance sheet. The stock currently sells for 20 a share, and there are 1,000 shares outstanding. The firm will either pay a 1 per share dividend or repurchase 1,000 worth of stock. For the purpose of this mini-case please ignore taxes. Assets Liabilities and Equity Cash 2,000 Debt 10,000 Fixed assets 28,000 Equity 20,000 Instructions: a. What will be the subsequent price per share if the firm pays a dividend? (3 points) What will be the subsequent price per share if the firm repurchases stock? (4 points) b. If total earnings of the firm are 2,000 a year, find earnings per share if the firm pays a dividend. (3 points) d. Please calculate the earnings per share if the firm repurchases stock. (4 points) e. Find the price-earnings ratio (PER) if the firm pays a dividend. (3 points) f. Find the price-earnings ratio (PER) if the firm repurchases stock. (4 points) g Why would a stock repurchase make more sense than an extra cash dividend? What is the effect of a stock repurchase on a firm's earnings per share? Its price-earnings ratio? (4 points)