FINA 6341 fall 2017: fall 2017 A Hunter Casselberry FINANCE chap 19 hw instructions I help Question 3 (of 5) Save & Exit Submit value: 10.00 points The Mann Company belongs to a risk class for which the appropriate discount rate is 14 percent. Mann currently has 229,000 outstanding shares selling at $128 each. The firm is contemplating the declaration of a $3 dividend at the end of the fiscal year that just began. Assume there are no taxes on dividends. Answer the following questions based on the Miller and Modigliani model, which is discussed in the text. a. What will be the price of the stock on the ex-dividend date if the dividend is declared? (Do not round intermediate calculations.) Price of the stock b. What will be the price of the stock at the end of the year if the dividend is not declared? (Do not round intermediate calculations.) Price of the stock c. If Mann makes $5.4 million of new investments at the beginning of the period, earns net income of $2.8 million, and pays the dividend at the end of the year, how many shares of new stock must the firm issue to meet its funding needs? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Number of shares References eBook & Resources Worksheet Difficulty: 1 Basic Section: 19.03 The Benchmark Case: An Illustration of the Irrelevance of Dividend Policy