Hewlard Pockets market value balance sheets illustrate the effects of dividends versus repurchases.

Assets						Liabilities and Shareholders Equity
A. Original balance sheet
Cash		$	150,000			Debt		$	0
Other assets			950,000			Equity			1,100,000
Value of firm		$	1,100,000			Value of firm		$	1,100,000
Shares outstanding = 100,000
Price per share = $1,100,000 / 100,000 = $11

Pocket wins a lawsuit and is paid $110,000 in cash. The market value of the equity rises by that amount, and Pocket decides to pay out $2.10 per share.

a.	What will be Pockets stock price if the payout comes as a cash dividend? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Stock price

$ per share

b.	What will be Pockets stock price if the payout comes as a share repurchase? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Stock price

$ per share