House of Haddock has $5,200$ shares outstanding and the stock price is $$160.$

The company is expected to pay a dividend of $$29$ per share next year and

thereafter the dividend is expected to grow indefinitely by $5\%$ a year. The

president, George Mullet, now makes a surprise announcement: He says that

the company will henceforth distribute half the cash in the form of dividends

and the remainder will be used to repurchase stock. The repurchased stock

will not be entitled to the dividend.

a$-1.$ What is the total value of the company before the announcement?

a$-2.$ What is the total value of the company after the announcement?

a$-3.$ What is the value of one share?

b$.$ What is the expected stream of dividends per share for an investor who

plans to retain his shares rather than sell them back to the company?

Check your estimate of share value by discounting this stream of

dividends per share.

Complete this question by entering your answers in the tabs below.

Req B

What is the expected stream of dividends per share for an investor who plans to retain his sh

Check your estimate of share value by discounting this stream of dividends per share. $($Do nc

answers to $2$ decimal places.$)$