Natsam Corporation has $250 million of excess cash. The firm has no debt and 600 million shares outstanding with a current market price of $17 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? (Round to the nearest cent.)

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? (Round to the nearest cent.)

c. In a perfect capital market, which policy, in part (a) or (b), makes investors in the firm better off? (Round to the nearest cent.)