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Barkshire Huskiway earns free cash flow of $ 10M annually in perpituit (the next FCF will be paid in 1 year) and has $ 4M in cash that it wants to use to repurchase stock. There are 0.5 M shares outsranding. The current stock price is $90 and barkshire wants to pay $99 a share to repurchase 80,000 shares. Barkshire is all equity financed and its shareholders require a return of 20%. Consider a shareholder with100 shares before the purchase. The shareholder sells 16% of their shares into the repurchase at $100 and keeps the remainder. What is the share holders change in wealth?

Please show steps the ans should be 0