Given:

-Sarah owns 500 shares of Dolphin Corp.

-Sarah paid an average of $25/share

-There are 100,000 shares outstanding for Dolphin Corp., and there is no income tax

-Dolphin Corp. has $300,000 it can use to either:

(a) pay a dividend or

(b) repurchase shares on the open market

-The current price for shares of Dolphin Corp. is $30

Required:

-If Dolphin Corp. chose to pay a dividend, how much cash would Sarah have?

-How much would Sarah's shares of Dolphin Corp. be worth?

-If Dolphin Corp. chose to repurchase shares, how much would Sarah's shares be worth?