QUESTION $5$

Dividend Policy

AT&T has $581$ million shares outstanding selling for $$15\mathrm{.}57$ per share. It plans to repurchase $14$ million shares at the market price. What will its market capitalization be after the repurchase?

Enter your answer in millions. Round your answer to zero decimals. Do not use a $ sign.

QUESTION $6$

Dividend Policy

Microsoft has $$258$ billion in total assets, $$12$ billion of which are cash. It plans to use $$2,000,000,000$ to initiate a dividend. Microsoft wants the present value of the payout to be the same $$2,000,000,000.$

If its cost of capital is $10\mathrm{.}2\%,$ to what amount per year in perpetuity should Microsoft commit?

Enter the full amount and round your answer to zero decimals. Do not use $ sign