Response to the following problem:
The Repo Corporation currently has 1 million common shares outstanding and have been paying a $1.00 dividend per share each quarter on their common shares. The Repo Corporation has decided to repurchase 10% of their common shares.
a. If they maintain their current dividend per share, how much will they be paying in dividends each quarter after the repurchase?
b. If they decide to keep the total dividend payments the same, what would be their new dividend per share?