How to solve Ch14 P13 from Financial Management: Theory and Practice 14th edition, Brigham.

I found the answers but it doesn't show how to calculate it.

Thanks

Solution Chapter: 14 Problem 13 128/2012 J. Clark Inc. (JCI), a manufacturer and distributer of sports equipment, has grown until it has become a stable, mature company. Now JCI is planning its first distribution to shareholders. Shown below are the most recent year's financial statements and projections for the next year, 2014 (JCI has a fiscal year ending on June 30). JCI plans to liquidate $500 million of its short-term securities and distribute them on July 1, 2014, the first day of the next fiscal year, but has not yet decided whether to distribute with dividends or with stock repurchases Amount of distribution Tax rate WACC Number of shares FCF constant qrowth rate $500 40% 11.0% 1,000 6.0% ActualProjected Income Statement (Millions of Dolla 6/30/2013 6/30/2014 $20,000.00 $21,200.00 $16,000.00 $16,960.00 Net Sales Costs (except depreciation) Depreciation Earning before int. & tax Interest expense Earnings before taxes Taxes $1,300.00 $1,378.00 1,00.00 $1,378.00 $2,700.00 $2,862.00 $150.00 $2,550.00 $2,709.18 $1.020.00 $1.083.617 1530.00$1,625.51 Net income a. Assume first that JCI distributes the $500 million as dividends. Fill in the missing values in the balance sheet column for July 1, 2014, that is labeled "Distribute as Dividends." (Hint: Be sure that the balance sheets balance after you fill in the missing items. Also, assume JCI did not have to establish an account for dividends payable prior to the distribution.) See below or calculations b. Now assume that JCI distributes the $500 million through stock repurchases. Fill in the missing values in the balance sheet column for July 1, 2014, that is labeled "Distribute as Repurchase." (Hint: Be sure that the balance sheets balance after you fill in the missing items.)