Question 4 (20 marks) Tiger Corporation has $900 million of excess cash. The firm has no debt and 600 million shares outstanding, with a current market price of $198 per share. Tiger's board has decided to pay out this cash as a one-time dividend. (a). What is the ex-dividend price of a share in a perfect capital market (no tax)? (5 marks) (b). If the board instead decided to use the cash to do a one-time share repurchase, compared with part (a), which policy is better for the firm in the perfect capital market? Please explain the reason. (5 marks) (c). What will the new share price be if the firm decides to declare a 15 percent stock dividend instead? (5 marks) (d). Suppose the board of Tiger Corporation decided to do the share repurchase in part (b), but you, as an investor, would have preferred to receive a dividend payment. How can you leave yourself in the same position as if the board had elected to make the dividend payment instead? (5 marks) I Question 4 (20 marks) Tiger Corporation has $900 million of excess cash. The firm has no debt and 600 million shares outstanding, with a current market price of $198 per share. Tiger's board has decided to pay out this cash as a one-time dividend. (a). What is the ex-dividend price of a share in a perfect capital market (no tax)? (5 marks) (b). If the board instead decided to use the cash to do a one-time share repurchase, compared with part (a), which policy is better for the firm in the perfect capital market? Please explain the reason. (5 marks) (c). What will the new share price be if the firm decides to declare a 15 percent stock dividend instead? (5 marks) (d). Suppose the board of Tiger Corporation decided to do the share repurchase in part (b), but you, as an investor, would have preferred to receive a dividend payment. How can you leave yourself in the same position as if the board had elected to make the dividend payment instead