Firm Via is an all-equity firm. It currently has 1,000,000 shares outstanding. Its total assets include $1 million cash and $14 million intangible assets which are the PV of future cash flows generated by firm projects. The firm doesnt have more positive NPV projects to invest in so it decides to either pay out the $1 million cash as dividends or use it to buy back shares. Assume that the tax rate on dividends is 15% and the tax rate on capital gains is 10% for its shareholders.

(i) What is the share price before the dividend payout if the $1 million is paid out as dividends?

(ii) What is the share price after the dividend payout if the $1 million is paid out as dividends?

(iii) What is the total shareholder wealth in $ million, if the $1 million is paid out as dividends?

(iv) What is the share price after the share repurchase if the $1 million is used to buy back shares?

(v) What is the total shareholder wealth in $ million, if the $1 million is used to buy back shares? Assuming that the average initial purchase price paid by the shareholders who tendered their shares is $15.