The Cariton Corporation has $4 million in earnings after taxes and 2 million shares outstanding. The stock trades at a P/E of 25 . The firm has $2 million in excess cash. a. Compute the current price of the stock. Note: Do not round intermediate calculations and round your answer to 2 decimal places. b. If the $2m ition is used to pay dlvidends, how much will dividends per share be? Note: Do not round intermediate calculations and round your answer to 2 decimal places. c. If the $2 million is used to repurchase shares in the market at a price of $52 per share, how many shares will be acquired? Note: Do not round intermediate calculations and round your answer to the nearest whole share. d. What will the new earnings per share be? Note: Use the rounded number of shares computed in part c but do not round any other intermediate calculations. Round your answer to 2 decimal places. e-1. If the P/E ratio remains constant, what will the price of the securitles be? Note: Use the rounded answer from part d and round your answer to the nearest whole dollar. e-2. By how much, in terms of dollars, did the repurchase increase the stock price? Note: A negative value should be indicated with a minus sign. Round your answer to the nearest whole dollar. f. Has the stockhoiders' total wealth changed as a result of the stock repurchase as opposed to recelving the cash dividend? Yes No