XYZ Corporation has 4 million earnings after tax and 1 million shares outstanding The stock trades at a P/E ratio of 10 The firm has 3 million in excess cash

a. Compute the current price of the stock

b. If the 3 million is used to pay dividends, how much will dividends per share be

c. If the 3 million is used to repurchase shares in the market at a premium price of 43.00 per share how many shares will be reacquired?

d. what will the new earnings per share be

e. if the P/E remains constant what will the new market price