to do with dividends. a. What will my financial position be after the stock split, compared to my current position? (Hint: Assume the stock price falls proportionately.) gain from the split? stock should sell for$41after the ex-dividend date. If instead of paying a dividend, the management decides to repurchase stock.

a. What should be the repurchase price that is equivalent to the proposed dividend? (Hint: Ignore any tax effects.)

b. How many shares should the company repurchase?

c. I want to look out for the small shareholders. If someone owns 100 shares, do you think she would prefer that the company pay the dividend or repurchase stock?