Suppose Nonlinear decides to pay out its cash purely in form of a repurchase. k) If Nonlinear has to pay the 20% transaction cost in cash, what is the dollar value of shares it can buy back? a. Value of shares bought back* 1.2=$SB, so Value = $3B/1.2=$2.SB I) How many shares does Nonlinear have to buy? What is the share price after the repurchase? a. P_R*R=$2.5. P_R=$6B/(300M-R). 2.5/R=6/(300M-R). 2.5*300M=8.5*R. R=88.253. P_R=$28.33 b) What is the total change in shareholder value from the repurchase? a. -$500M c) How much money does Nonlinear have to pay in transaction fees in total? a. $500M