In: Finance
Hodgkiss Corporation is evaluating an extra dividend versus a
share repurchase. In either case, $27,000 would be spent. Current
earnings are $2.70 per share, and the stock currently sells for $96
per share. There are 4,500 shares outstanding. Ignore taxes and
other imperfections.
What will the company’s EPS and PE ratio be under the two different
scenarios? (Do not round intermediate calculations and
round your answers to 2 decimal places, e.g.,
32.16.)
Extra Dividend | Share Repurchase | |
EPS | $ | $ |
PE Ratio |
NO OF SHARES ARE NOT ROUNDED AS IT IS WRITTEN NO INTERMEDIATE ROUNDING SHOULD BE DONE.