United Contractors C. Pty Ltd (UC) has $10 million excess cash in the company's account. The management is thinking about distributing the excess to the shareholders, via a special cash dividend or a share repurchase. Currently the company has 12.5 million shares outstanding and the market share price is $11. Part 1 (7 marks): Harold Finch is a shareholder of UC and holds 100,000 shares. Assume that his personal marginal tax rate is 30% for dividend and 10% for capital gains. Answer the following questions for Harold. (a) If the company decides to use the $10 million cash to pay a special cash dividend, how much in total will Harold receive after tax? What is the ex- dividend share price? What is the total value of Harold's portfolio after the dividend payment, including the shares he owns and the after-tax dividends he has received? (b) If the company decides to repurchase shares at the current share price, Harold will sell all his shares back to the company. He purchased the shares 18 months ago at a price of $9.5. How much will he receive after tax