The Mann Company belongs to a risk class for which the appropriate discount rate is 10...

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The Mann Company belongs to a risk class for which theappropriate discount rate is 10 percent. The company currently has240,000 outstanding shares selling at $150 each. The firm iscontemplating the declaration of a $4 dividend at the end of thefiscal year that just began. Assume there are no taxes ondividends. Answer the following questions based on the Miller andModigliani model, which is discussed in the text.

a.
What will be the price of the stock on the ex-dividend date ifthe dividend is declared? (Do not round intermediatecalculations.)
b. What will bethe price of the stock at the end of the year if the dividend isnot declared? (Do not round intermediatecalculations.)
c. If thecompany makes $6.5 million of new investments at the beginning ofthe period, earns net income of $3.9 million, and pays the dividendat the end of the year, how many shares of new stock must the firmissue to meet its funding needs? (Do not round intermediatecalculations and round your answer to the nearest whole number,e.g., 32.)
a. Price of thestock $
b. Price of thestock $
c. Numberof shares

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The Mann Company belongs to a risk class for which theappropriate discount rate is 10 percent. The company currently has240,000 outstanding shares selling at $150 each. The firm iscontemplating the declaration of a $4 dividend at the end of thefiscal year that just began. Assume there are no taxes ondividends. Answer the following questions based on the Miller andModigliani model, which is discussed in the text. a.What will be the price of the stock on the ex-dividend date ifthe dividend is declared? (Do not round intermediatecalculations.)b.What will bethe price of the stock at the end of the year if the dividend isnot declared? (Do not round intermediatecalculations.)c.If thecompany makes $6.5 million of new investments at the beginning ofthe period, earns net income of $3.9 million, and pays the dividendat the end of the year, how many shares of new stock must the firmissue to meet its funding needs? (Do not round intermediatecalculations and round your answer to the nearest whole number,e.g., 32.)a.Price of thestock$b.Price of thestock$c.Numberof shares

a.	What will be the price of the stock on the ex-dividend date ifthe dividend is declared? (Do not round intermediatecalculations.)
b.	What will bethe price of the stock at the end of the year if the dividend isnot declared? (Do not round intermediatecalculations.)
c.	If thecompany makes $6.5 million of new investments at the beginning ofthe period, earns net income of $3.9 million, and pays the dividendat the end of the year, how many shares of new stock must the firmissue to meet its funding needs? (Do not round intermediatecalculations and round your answer to the nearest whole number,e.g., 32.)