Hors d'Age Cheeseworks has been paying a regular cash dividend of $11 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 86,000 shares outstanding selling for $94 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. O Yes O No b. How many shares will Hors d'Age purchase? Number of shares c. Project future stock prices for both the old and new policies for years 1, 2, and 3. Price year 1 Price year 2 Price year 3