Xtra Corp. stock is selling for $45 per share. The company has $2 million in cash to pay out to shareholders through (i) special dividend or (ii) open-market repurchase. If there are 1,000,000 shares outstanding, which is true?

(a) The repurchase (choice (ii)) is preferred because all stockholders receive cash

(b) The market value of equity after the transaction is the same for (i) and (ii)

(c) You cannot calculate market value of equity after the transaction because we do not know enough details

(d) The effect of choice (i) and (ii) are the same on the stock price