Phillips has announced its plan to pay dividends of $550,000. Presently, there are 275,000 shares outstanding, and the earnings per share is $6. It looks like the stock should sell for $45 after the ex-dividend date. If instead of paying a dividend, the management has decided to repurchase stock,

A. What should be the repurchase price that is equivalent to the proposed dividend?

B. Number of shares to repurchase = dividends/new repurchase price

C. Looking out for small shareholder's. If someone owns 100 shares, do you think she would prefer that the company pay the dividend or repurchase stock.