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Continuing from the previous question, suppose existing shareholders of Go Hogs! Inc. prefer to receive $20,000 dividends this year (instead of $15,000) and all remaining
Continuing from the previous question, suppose existing shareholders of Go Hogs! Inc. prefer to receive $20,000 dividends this year (instead of $15,000) and all remaining avaiable cash dividends next year. Go Hogs! Inc. will finance the additional $5,000 through issuing new shares. New shareholders require the same 10% return and the new shares are issued ex-dividend. According to MM's dividend irrelevance theory, how many new shares are issued?
A. 1000
B. 175
C. 200
D. 579
E. 259
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