Roger Ramjet is the Chief Financial Officer for Moreton Bell Securities Ltd., a company listed on the Australian Securities Exchange (ASX). He has been asked by the Board of Directors to assess the following alternative proposalsfor the company;

a)using$400,000 of company earnings to pay cash dividends of $1 per share, or

b)buy back existing shares from shareholders for $21 per share.

Roger has asked Ms. Nigella Lawton, a recent Finance Graduate from the revered Flannders University Business School to assist him in his evaluation. Nigella has gathered the following current financial information regarding Moreton Bell Securities Ltd.:DetailAmount / ValueNumber of issued shares400,000Earnings available to shareholders$800,000Current share price$20Price / Earnings (P/E) Ratio10Required:a)Using the funds that would have gone to pay the cash dividend, approximately how many shares can be repurchased by Moreton Bell Securities Ltd.at the $21-per-share price?