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Company A has 6000 shares outstanding and current stock price is $20/share. Accordingly, company A's balance sheet is as follows (in market value) Surplus cash

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Company A has 6000 shares outstanding and current stock price is $20/share. Accordingly, company A's balance sheet is as follows (in market value) Surplus cash $12,000 Debt $0 Fixed assets and net working capital $108.000 Equity market capitalization $120,000 $120,000 $120,000 A shareholder holds one share of the stock. Now, company A decides to payout the surplus cash (only for the current period). (only put numbers, no comma or S sign) (a). If company A decides to payout all the surplus cash as dividends, what's the new equity market capitalization of the company on the balance sheet? What's the new price per share? /share What's shareholder's wealth (per share) in the current period including both cash income and value of the stock held by the shareholder? $ /share (b). If company A decides to payout all the surplus cash as share repurchase, how many shares can it repurchase? shares What's the number of shares outstanding now? shares What's the new equity market capitalization of the company in the balance sheet? S What's shareholder's wealth in the current period including both cash income and value of the stock held by the shareholder? Assume the shareholder still holds one share of the stock. S /share

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