Workshop ) Suppose Good Buy must pay corporate taxes at a 30% rate on the interest it will earn fromthe one-year Treasury bill paying 1.85% interest would pension fund investors (who do not pay taxes on their investment income) prefer that GoodBuy use its excess cash to pay the $375,000 dividend immediately or retain the cash for one year? What would be the amount that the pension fund will receive in each case? Suppose that bobcat, INC currently has $5M in excess cash available to repurchase stock or pay dividends on its IM shares. Suppose Bobcat decides to use the $5M to repurchase shares on the open market. How will the purchase affect the share price if the current stock price is S25?, represent this in a balance sheet format. 2) Chronicle is an all-equity firm with 50 million shares outstanding. Chronicle has $75 million in cash and expects future free cash flows of $30 million per year. Management plans to use the cash S36 million per year. If the cost of capital of Chronicle's investments is 12 3) to expand the firm's operations, which will in turn increase future free cash flows to 12%, how would a decision to use the cash for a share repurchase rather than the expansion Metronic firm has $70M in equity and $30M in debt and forecasts $14M in net year. It currently dividends change in payout policy -an increase in dividends to change affect your internal and sustainable growth rate 4) avs dividends equal to 20% of its net income. You are analyzing a potential S30% of net income. How would this s? on ahout the change in nroduction volume of sales for a comn