. Question 5 [22 marks] (a) XYZ Corp. has just announced a $1 cash dividend. If XYZ's stock price cum-dividend is $50, how would the market react to this announcement and what should its share price be ex-dividend (assuming perfect capital markets)? (2 marks) (b) Provide an explanation articulating why the following statement may be true, false or even uncertain. (Word limit: 150) In perfect capital markets, an open market share repurchase has no effect on the stock price, and the stock price is the same as the ex-dividend price if a dividend were paid instead." Note: Simply stating 'True' or False' will result in ZERO marks for the question. (4 marks) e e