An all equity company has a book value equal to its market value, with $43k in cash and $67k in other assets. the firm has 7.5k shares outstanding and net income of $2k.

a. if the firm uses its cash to complete a stock repurchase, what with the new eps be?
b. if the firm used its cash to pay a $5.73 dividend, what would the new stock price be?

Miami incorporated estimates that its retained earnings break point (bpre) is $21 million, and its wacc is 13.40 percent if common equity comes from retained earnings. however, if the company issues new stock to raise new common equity, it estimates that its wacc will rise to 13.88 percent. the company is considering the following investment projects: project size irr a $4 million 14.00% b 5 million 15.10 c 4 million 16.20 d 6 million 14.20 e 1 million 13.42 f 6 million 13.75 what is the firm's optimal capital budget?