Nano Ltd operate a number of car washes and auto valet services. The company has experienced a reasonable trading year. They are deciding whether to pay out R$248000$ in accumulated cash in the form of a dividend to shareholders or embark on a share repurchase campaign. Current earnings are R$7\mathrm{.}20$ per share and the share sells for R$80.$

Their abbreviated statement of financial position before paying out the dividend is as follows:

Assets

Equity and Liabilities

Tangible assets

$400000$

Equity

$620000$

Inventories

$40000$

Debt

$180000$

Receivables

$60000$

Bank$/$cash

$300000$

Total

$800000$

Total

$800000$

Required:

$3\mathrm{.}1$ Calculate the number of shares in issue if the company where to pay the dividend. $(4)$

$3\mathrm{.}2$ Calculate the number of shares in issue if the company where to repurchase its

shares. $(4)$

$3\mathrm{.}3$ Calculate the dividends per share $($for the first alternative, i$.$e$.$ pay the dividend$)(3)$

$3\mathrm{.}4$ Determine the net asset value of the firm should the company not exercise the option

to repurchase its shares. $(3)$

$3\mathrm{.}5$ Determine the new share price, earnings per share and price$-$earnings ratio under both

alternatives $($i$.$e$.$ pay the dividend and repurchase the shares$)$