P 17-8 (similar to) Question Help Natsam Corporation has $235 million of excess cash. The firm has no debt and 541 million shares outstanding with a current market price of $19 per share Suppotto the bond docided to do a one time share repurchase, but you, as an investor, would have preferred to receive a dividend payment. How can you have yourself in the samo posibon as if the board had elected to make the dividend payment instead? Which of the following is true regarding the effect of a one time share repurchase on the stock price in a perfect market? (select the best choice below) O A An open market share repurchase has no effect on the stock price OB. An open market share repurchase decreases the share price because the firm's assets decline by purchases of the shares OC. An open market share ropurchase increases the stock price due to the decrease in shares in the marketplace OD. An open market share repurchase has no effect on the stock price, but the stock price is not the same as the cum-dividend price fa dividend were paid instead 0 Score: 0 of 1 pt 9 of 26 (0 complete) HW Score: 0%, 0 of 26 pts P 17-9 (similar to) Question Help The HINH Corporation will pay a constant dividend 51 25 per share, per year, in perpetuty Assume all investors pay a 20% tax on dividends and that there is no Capital gains tax The cost of capital for investing in HNH stock is 14% a. What is the price of a share of HNH stock? b. Assume that management makes a surprise announcement that HNH will no longer pay dividends but will use the cash to repurchase stock instead What is the price of a share of HNH Stock now? a. What is the price of a share of HNH stock? The price of a share of HNH stock is $ (Round to the nearest cent) 0/ OV