Stock repurchase Harte Textiles, Inc., a maker of custom upholstery fabrics, is concerned about preserving the wealth of its stockholders during a

cyclic downturn in the home furnishings business. The company has maintained a constant dividend payout of $$1\mathrm{.}00$ tied to a target payout ratio of $30\%.$

Management is preparing a share repurchase recommendation to present to the firm's board of directors.

The following data have been gathered from the last two years:

a$.$ How many shares should the company have outstanding in $2022$ if its earnings available for common stockholders in that year are $$1,600,000$ and it

pays a dividend of $$1\mathrm{.}00,$ given that its desired payout ratio is $30\%?$

b$.$ How many shares would Harte have to repurchase to have the level of shares outstanding calculated in part a$?$

$($Click on the icon here in order to copy the contents of the data table below into

a spreadsheet.$)$