Company Delta has 250 shares outstanding. Its assets consists of cash = 500 and fixed assets of 2,000. Answer the following questions:

(i) Sigma has declared a dividend of 0.80 per share. The stock goes exdividend tomorrow. What is the price of stock today and tomorrow? (Assume no taxes).

(ii) Sigma has declared instead a 12% stock dividend. The stock goes exdividend tomorrow. What is the price of stock today and tomorrow? (Assume no taxes).

(iii) Instead of paying a cash dividend, Sigma has announced that it is going to repurchase 200 of stock. What is the effect of this repurchase? Ignoring taxes, show how this repurchase is effectively the same as a 0.80 dividend per share.