EJH Company is an all-equity firm that has a market capitalization of $1.3 billion and 10 million shares outstanding. It plans to distribute $120 million excess cash through an open market repurchase. Assuming perfect capital markets:

(i) What will the price per share of EJH be right before the repurchase?

(ii) How many shares will be repurchased? (iii)What will the price per share of EJH be right after the repurchase?

(i) Assume that EJH makes a surprise announcement by distributing $120 million excess cash through a special cash dividend instead of a share repurchase. What is the dividend per share and what is the stock price after the ex-dividend date?