The stock of Payout Corp. will go ex$-$dividend tomorrow. The dividend will be

$$1$ per share, and there are $20,000$ shares of stock outstanding. The market$-$

value balance sheet for Payout is shown below.

Suppose that Payout changes its mind and decides to issue a $1\%$ stock

dividend instead of either issuing the cash dividend or repurchasing $1\%$ of the

outstanding stock. How would this action affect a shareholder who owns $100$

shares of stock? $($Round your answers to the nearest dollar.$)$

Total value of the position

Compare the effects of the repurchase to the effects of the cash dividend.

The value of the position is higher than $,$ under the cash dividend.

Compare the effects of the repurchase to the effects of repurchasing $1\%$ of the

outstanding stock.

The value of the position is lower than $,$ under the repurchase.