i need help with these three questions, which answers are already done in word, translate to excel.

Thanks

FIN516 WEEK 1 - HOMEWORK Problem 17-7 on Ex-dividend Price Based on Chapter 17 Payout Policy Natsam Corporation has $250 million of excess cash. The firm has no debt and 500 million shares outstanding with a current market price of $15 per share. Natsam's board has decided to pay out this cash as a one-time dividend. a. What is the ex-dividend price of a share in a perfect capital market? b. If the board instead decided to use the cash to do a one-time share repurchase, in a perfect capital market, what is the price of the shares once the repurchase is complete? c. In a perfect capital market, which policy in part (a) or (b) makes investors in the firm better off? Solution: a. The dividend payoff on per share basis is $250/$500 = $0.50. In capital market the price of the shares 15-.50= $14.50 b. $15 c. Both are the same. Problem 17-15 on Distribution to Shareholders Based on Chapter 17 Payout Policy Suppose that all capital gains are taxed at a 25% rate and that the dividend tax rate is 50%. Arbuckle Corporation is currently trading for $30 and is about to pay a $6 special dividend. a. Absent any other trading frictions or news, what will its share price be just after the dividend is paid? Suppose Arbuckle made a surprise announcement that it would do a share repurchase rather than pay a special dividend. b. What net tax savings per share for an investor would result from this decision? c. What would happen to Arbuckle's stock price upon the announcement of this change? Solution: a. tax rate = (50% - 25%)/(1 - 25%) = 33.3%, Previous price = 30 - 6(1 - t*) = $26 b. With dividend, tax would be 6 50% = $3 for dividend, Tax savings of $30-$26=4 25% = $1 for capital loss For a net tax from the dividend of $2 per share. This amount would be saved if Arbuckle does a share repurchase instead. FIN516 WEEK 1 - HOMEWORK c. Stock price rises to by $2 to $32 to reflect the tax savings. Problem 17-19 on Dividend Capture Strategy Based on Chapter 17 Payout Policy Que Corporation pays a regular dividend of $1 per share. Typically, the stock price drops by $0.80 per share when the stock goes ex-dividend. Suppose the capital gains tax rate is 20%, but investors pay different tax rates on dividends. Absent transactions costs, what is the highest dividend tax rate of an investor who could gain from trading to capture the dividend? Solution: Because the stock price drops by 80% of the dividend amount, shareholders are indifferent if tg = 20%. (td - tg)/(1 - tg) = t*, So td = tg + t* (1 - tg) =0.2+0.2(1-0.2) = 36%