Short Anwwer Question 3 (Totad if marks) gqpected to Eenerate a cath inflow every year forever. The casty infiows of epch project are ayen befow: Project A: $4 million per yeur Project B: $6 million per year Linter Ltd has a cost of capital of 10% p.a. compounded annually and 100 million outstanding shares. All tallier and Modigirani dividend irrelevance proposition's assumptions hold. a) Suppose today is the end of the financial year and the company is about to pay out its carnings. Calculate the share price of the company immediately before any payouts f(Le. the cum-dividend price). ( 1 mark) b) Assume tinter Ltd pays out all of its cash flows as dividends today. What will be the shareholders' total wealth, including the dividend income, immediately after the dividends are paid? Show the breakdown of shareholders' total wealth in terms of shareholdings and cash. ( 2 marks) c) Assuming that instead of paying cash dividends, Linter Ltd uses all of its cash flows to buy back shares. Hoy many shares will be repurchased? What will be the shareholders' total wealth, including the payments receiv from the share buyback, immediately after the share buyback is completed? ( 2 marks) 1) Calculate the earnings per share ratio (EPS) for both part b) and c). If Lint Ltd's shareholders were ration vestors, would you expect them to prefer a cash dividend or a share buyback? Explain your answer. (3 n