The balance sheet for NatWest is shown here in market value terms. There are 2,000 million shares outstanding. P Cashe Non-current assets Total Market Value Balance Sheet ( million) 3,854 4,708 8,562 Equity Liabilities (b) What will they sell for tomorrow? Total (a) Ignoring any tax effects, what are the shares selling for today? (c) What will the market value balance sheet look like after the dividends are paid? The company has declared a CASH dividend of 0.50 per share. The equity goes ex dividend tomorrow. (d) What effect will this transaction have on the equity of the firm? (f) What will the price per share be after the repurchase? 4,400 (e) How many shares will be outstanding after the repurchase? 4,162 8,562 2 2 [6 marks] In the previous problem, suppose NatWest has announced that it is going to repurchase 880 million worth of equity. [4 marks] [4 marks] [4 marks] [3 marks] [4 marks] (g) Ignoring tax effects, show how the share repurchase is effectively the same as a cash dividend. [5 marks]