A company is considering distributing its $150 in cash eithe…

A company is considering distributing its $150 in cash either in the form of a dividend or by buying back its stock.  If it distributes the $150 as a dividend, the cash will go to the current shareholders. If the company buys back its stock, it will pay $15/share. Using the drop-down choices, fill-in the six blanks in the table below to show the effects of the two distributions.                          Issue dividends                                              Buyback shares         A                   a         B                   b         C                   c