Please show step by step

Homework #8 Dividend Policy 3. (40 points) A company has no debt and is considering returning excess cash to the stockholders. The company currently has 3 outstanding shares with price at $4 each. If it intends to return $3 in total to the stockholders, can you fill up the analysis below to demonstrate the differences between stock repurchases and dividends? Equity = $12 Stock Repurchase Equity = (3 shares at $4 per share) ( shares at $ / per share) Afterwards Equity = $12 Dividends (3 shares at $4 per share) Equity = $7 Afterwards ( shares at $/ per share) Frank Sung for Rutgers Business School Spring 2021 3