Give typed solution Payout irrelevance WeDon'tWork Inc. is a company that provides shared leisure space for young adults. The company has $10 million in excess cash on hand, no debt, and 30 million shares of stockoutstanding worth $20.00 per share. The company plans to distribute its excess cash by paying a $0.33 special dividend.a. Assuming markets are perfect, what is the stock's ex-dividend price?b. Suppose the board decides to repurchase shares on the open market with its excess cash rather than payingc. Which policy, dividend or repurchase, makes shareholders better off?dividend. What is the price per share when the repurchase is completed?

In perfect markets there is no taxes and transaction cost. The value of company's equity can be…

a. Assuming markets are perfect, what is the stock's ex-dividend price? b. Suppose the board decides to repurchase shares on the open market with its excess cash rather than paying a dividend. What is the price per share when the repurchase is completed? c. Which policy, dividend or repurchase, makes shareholders better off?