Suppose firm A has a share price of 20€ and 110 million shares outstanding. It is considered a payout of 200 million in the form of either a cash dividend or a stock repurchase. What is the effect (if any) of each of there alternatives on:
- Firm marker capitalization,
- The number of shares outstanding,
- The stock price,
- Shareholders' total wealth?
The firm has no debt, and there are not taxes or other frictions.