Q. 7. (7) NBA Corp. has total available cash of $22,500 and its "production function" is Y2p400I1 if state P occurs and Y2D280I1 if state D occurs. Both states are equally likely and the prices of the state securities are VP=0.40 and VD=0.50. The firm has 1,000 outstanding common shares. NBA wants to maintain its optimal investment I1 at $22,500 but wants to pay dividends of $12,500. The firm will issue new shares to finance the dividends. (a) How many new shares should be issued? And at what price? (b) What will be the price per share after the announcement of the dividends