The Belton Corporation has $7 million in earnings after taxes and 2 million shares outstanding. The stock trades at a P/E of 20. The firm has $4 million in excess cash.

a. If the $4 million is used to repurchase shares in the market at a premium price of $72.0 per share, how many shares will be reacquired? (Round the final answer to the nearest whole number.)

b-1. If the P/E remains constant, what will the new price of the securities be? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b-2. By how much, in terms of dollars, did the repurchase change the share price?

c. Has the shareholders total wealth changed as a result of the stock repurchase as opposed to the cash dividend?

d. From the shareholders perspective, is there any major tax advantage to tendering ones shares versus the receipt of cash dividends?