A corporation is evaluating an extra dividend versus an open market share repurchase

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A corporation is evaluating an extra dividend versus an open market share repurchase. in either case, $16,000 would be spent. current earnings are $4.5 per share. and the stock currently sells for $80 per share. there are 2000 shares outstanding. ignore taxes and other imperfections in answering the following two questions:
1, what is the stock price, EPS, P/E ratio and total equity value if the firm chooses to do a repurchase?
2,what is the stock price, EPS, P/E ratio and total equity value if the firm chooses to pay dividend?

    • 13 years ago
    A corporation is evaluating an extra dividend versus an open market share repurchase
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      repurchse_and_dividend.xls