1. New Built wants to repurchase 20,000 shares at $21 a share through a tender offer. Shareholders responded by offering 26,500 shares at $21 a share. Assume you are a shareholder and offered your 300 shares as part of the shareholder response. How many of your shares should you expect New Built to purchase?

0 shares

300 shares

398 shares

226 shares

251 shares

2. KLT just paid an annual dividend of $2.10 a share. The firm has a target payout ratio of .45 and a speed of adjustment value of .5. What is the expected value of next year's annual dividend if the firm expects its earnings per share to be $4.94?

$2.16

$2.22

$2.47

$1.24

$1.11