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。

Assets		Liabilities and Equity
Cash	$100,000	Equity	$1,000,000
Fixed assets	900,000

Now suppose that Payout from problem 8 announces its intention to repurchase $20,000 worth of stock instead of paying out the dividend.

a.	What effect will the repurchase have on an investor who currently holds 100 shares and sells 2 of those shares back to the company in the repurchase?
b.	Compare the effects of the repurchase to the effects of the cash dividend that you worked out in problem