The Company belongs to a risk class for which the appropriate discount rate is 11 percent. Company currently has 235,000 outstanding shares selling at $441 each. The firm is contemplating the declaration of a $10 dividend at the end of the fiscal year that just began. Assume there are no taxes on dividends. Answer the following questions based on the Miller and Modigliani model. a. What will be the price of the stock on the ex-dividend date if the dividend is declared? b. What will be the price of the stock at the end of the year if the dividend is not declared?

c. If company makes $4.25 million of new investments today, earns net income of $2.1 million, and pays the dividend at the end of the year, how many shares of new stock must the firm issue to meet today's funding needs?

Shows all the step and formula. Don't round off until you get the answer.