Hors d'Age Cheeseworks has been paying a regular cash dividend of $14 per share each year for more than a decade. The company is paying out all its earnings as dividends and is not expected to grow. There are 80,000 shares outstanding selling for $100 per share. The company has sufficient cash on hand to pay the next annual dividend. Suppose that, starting in year 1, Hors d'Age decides to cut its cash dividend to zero and announces that it will repurchase shares instead. a. Is there any immediate stock price reaction? Ignore taxes, and assume that the repurchase program conveys no information about operating profitability or business risk. Yes No b. How many shares will Hors d'Age purchase? (Enter your answer as a whole number.) Number of shares c. Project future stock prices for both the old and new policies for years 1, 2, and 3. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Price year 1 Price year 2 Price year 3 Het Love il Sim Check my work 4. 10 Hors d'Age Cheeseworks has been paying a regular cash dividend of $14 per share each year for more than a decade. The company is paying out all its earnings as dividends and is not expected to grow. There are 80.000 shares outstanding selling for $100 per share The company has sufficient cash on hand to pay the next annua dividend Suppose that starting in year 1. Hon d'Age decides to cut its cash dividend to rero and announces that will purchase shares instead a. Is there any immediate stock price reaction? ignore thes, and anume that the purchase program conveyone information about operating profitability or business is O Yes No th. How many shares wil HondAge purchase? (Enter your answer as a whole number) Project future stock prices for both the old and new policies for years 12 and 3. Do not round Intermediate calculation und your final answer to 2 decimal places Price Next >