Company ABC has been paying regular dividend per share of $4 for over 10 years

It is paying all profits out as dividends and is not expected to grow

It has 100,000 share outstanding and the share price is $80

Now the company instead changes to use its profit to repurchase shares

1. What is the investors annual return in the current situation

2. Calculate would be the number of shares that it would repurchase and the expected share price for year 1, year 2 and year 3.