Panama Red Inc. is a North Carolina based tobacco grower. Selected financial information for Panama Red is provided in the table below. Panama Red wants to distribute all of its cash. It is considering two potential forms of distribution: 1) a special dividend, or 2) a stock buyback at $22.50 per share. To help with the decision, youve been asked to calculate the price for the shares on the ex-dividend day (if it uses a dividend) and after the repurchase (if it chooses that option).

Panama Red Cash $20,000M Market Capitalization $125,000M Shares Outstanding 5,000M Debt $0 Stock Price $25.00