Palace, Inc. has a currently a (excess) cash of $1.2 million and pays no dividends. The present value of the companys future cash flows is $15 million. The company is entirely financed with equity and has 600,000 shares outstanding. Assume the dividend tax rate is zero. a. What is the share price of the Palace stock? b. Suppose the board of directors of Palace, Inc. announces its plan to pay out 50 percent of its current cash flow as cash dividends to its shareholders. How can Milos Freeman, who owns 1,000 shares of Palace stock, achieve a zero payout policy on his own?