HNH Corporation has made a before-tax profit of $500 million. The firm has no debt and 100 million shares outstanding, with a current market price of $30 per share. HNH's board is currently deciding whether to pay out this profit to shareholders through a dividend or share repurchase. 1. If the board chooses to pay a dividend, what is the ex-dividend price of the shares in a perfect capital market with no taxes? 2. Suppose that the board decides to pay a dividend. Assume that HNH pays corporate taxes of 30% and the marginal tax rate for shareholders is 40%. What is the after-tax dividend and effective tax rate for shareholders: 3. In an imputation system (assuming that the dividend is 60% franked)? HNH Corporation has made a before-tax profit of $500 million. The firm has no debt and 100 million shares outstanding, with a current market price of $30 per share. HNH's board is currently deciding whether to pay out this profit to shareholders through a dividend or share repurchase. 1. If the board chooses to pay a dividend, what is the ex-dividend price of the shares in a perfect capital market with no taxes? 2. Suppose that the board decides to pay a dividend. Assume that HNH pays corporate taxes of 30% and the marginal tax rate for shareholders is 40%. What is the after-tax dividend and effective tax rate for shareholders: 3. In an imputation system (assuming that the dividend is 60% franked)