I might have already asked this question. But i really need an answer as fast as posible. Thank you so much!

4. Company Delta has 250 shares outstanding. Its assets consists of cash = 500 and fixed

assets of 2,000. Answer the following questions:

(i) (2 points) Sigma has declared a dividend of 0.80 per share. The stock goes exdividend

tomorrow. What is the price of stock today and tomorrow? (Assume no

taxes)

(ii) (2 points) Sigma has declared instead a 12% stock dividend. The stock goes exdividend

tomorrow. What is the price of stock today and tomorrow? (Assume no

taxes)

(iii) (2 points) Instead of paying a cash dividend, Sigma has announced that it is going to

repurchase 200 of stock. What is the effect of this repurchase? Ignoring taxes,

show how this repurchase is effectively the same as a 0.80 dividend per share.