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What would Table 17.1 look like if the dividend changes to $1.50 per share and the share repurchase to $150,000? TABLE 17.1 Hewlard Pocket's market

What would Table 17.1 look like if the dividend changes to $1.50 per share and the share repurchase to $150,000?

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TABLE 17.1 Hewlard Pocket's market value balance sheets illustrate the effects of dividends versus repurchases. Assets A. Original Balance Sheet Cash Other assets Value of firm Shares outstanding- 100,000 Price per share $1,100,000/100,000 $11 B. After Cash Dividend of $1 per Share Cash Other assets Value of firm Shares outstanding- 100,000 Price per share = $1,000,000/100,000 = $10 C. After $100,000 Stock Repurchase Program Cash Other assets Value of firm Shares outstanding- 90,909 Price per share $1,000,000/90,909 $11 Liabilities and Shareholders' Equity $150,000 950,000 $1,100,000 Debt Equity Value of firm 0 1,100,000 $1,100,000 $50,000 950,000 $1,000,000 Debt Equity Value of firm 0 ,000,000 $1,000,000 $ 50,000 950,000 $1,000,000 Debt Equity Value of firm 0 ,000,000 $1,000,000

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