申論題

Ⅱ.Computational Questions (25 points, 5 points for each)

5. Evenglade Corp has 1,000 shares outstanding priced at S10 a share. The company is unsure whether to pay out $1 a share as a dividend or to use the money to repurchase stock. If it pays a dividend, what happens to the stock price? If it repurchases, how many shares will remain and at what price?