iace Len7726/18 10:15 Homework: Chapter 13 Graded Homework. core: 0 of 1 pt 5 0f 5 (4 complete) HW Score: 80%, 4 of 5 Problem 13.LO1.30 (similar to) , Question Help Hewlett Packard has $58 of excess cash and is considering distributing it with either a special dividend or a stock repurchase. The stock is trading for $24 per share and there are 4B shares outstanding. Sarah has 100 shares of Hewlett P Sarah pays a 20% tax rate on capital gains and a rate of 37% on dividends. a. If HP offers a special dividend, then what is Sarah's total after-tax wealth (the sum of her cash and shareholdings) after the dividend? b. If HP repurchases shares, then it will pay the pre-repurchase price. What is Sarah's total after-tax wealth (the sum of her cash and shareholdings) aft repurchase? Assume that Sarah sells the same proportion of shares as HP repurchases, and that she receives the same price that HP pays. c.Which method of distribution does Sarah prefer? a. Sarah's total after-tax wealth after the dividend is $125 (Roung to rearest dollar)