Number of shares is not 5,000

Problem 17-21 Payout Policy (LO3) Hors d'Age Cheeseworks has been paying a regular cash dividend of $4 per share each year for more than a decade. The company is paying out all its earnings as dividends and is not expected to grow. There are 100,000 shares outstanding selling for $80 per share. The company has sufficient cash on hand to pay the next annual dividend, Suppose that starting in year 1, Hors d'Age decides to cut its cash dividend to zero and announces that it will repurchase shares instead b. How many shares will Hors d'Age purchase? (Enter your answer as a whole number.) Number of shares c. Project future stock prices for both the old and new policies for years 1, 2 and 3. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Price year 1 Price year 2 Price year 3