1. In a perfect market, if a normal investor cannot participate in a share repurchase program, would she be better off with a dividend payout than with a share repurchase?
2. Consider a firm with 80 shareholders, including yourself, who each own $10 worth of shares. In addition, I own 20 shares (for a firm total of 100 shares) and I am trying to fire the management. To appease me, the management has offered to purchase my shares at $15 per share. How would this change the value of your shares?