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, $2024($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 $1,2024,$ the first day of the next fiscal year, but has not yet decided whether to distribute with

dividends or with stock repurchases.

a$.$ Assume first that $JCl$ distributes the $$500$ million as dividends. Fill in the missing values in the balance sheet

column for July $1,2024,$ that is labeled "Distribute as Dividends." $($Hint: Be sure that the balance sheets balance after

you fill in the missing items. Also, assume $JCl$ did not have to establish an account for dividends payable prior to the

distribution.$)$

See below for

calculations.

b$.$ Now assume that $JCl$ distributes the $$500$ million through stock repurchases. Fill in the missing values in the

balance sheet column for July $1,2024,$ that is labeled "Distribute as Repurchase." $($Hint: Be sure that the balance

sheets balance after you fill in the missing items.$)$J$.$ Clark Inc. $($JCl$),$ 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, $2024($JCI has a fiscal year ending on June $30).$ JCl plans to liquidate $$500$ million of its short$-$term

securities and distribute them on July $1,2024,$ the first day of the next fiscal year, but has not yet decided whether to distribute with

dividends or with stock repurchases.

a$.$ Assume first that JCI distributes the $$500$ million as dividends. Fill in the missing values in the balance sheet

column for July $1,2024,$ 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 for

b$.$ Now assume that JCI distributes the $$500$ million through stock repurchases. Fill in the missing values in the

balance sheet column for July $1,2024,$ that is labeled "Distribute as Repurchase." $($Hint: Be sure that the balance

sheets balance after you fill in the missing items.$)$

c$.$ Caculate JCI's projected free cash flow; the tax rate is $25\%.$

Value of operations

$+-$ Value of neneperating assets

Total intrinsic value of firm

$-$Debt

$+-$ Number of shares

Intrinsic price per share