The Carlton Corporation has $$7$ million in earnings after taxes and $2$ million shares outstanding. The stock trades at a P$/$E of $20.$ The firm has $$5$ 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 $$5$ million is used to pay dividends, how much will dividends per share be$?$

Note: Do not round intermediate calculations and round your answer to $2$ decimal places.

c$.$ If the $$5$ million is used to repurchase shares in the market at a price of $$75$ 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 securities 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 stockholders$$ total wealth changed as a result of the stock repurchase as opposed to receiving the cash dividend?

multiple choice

Yes

No