Max Firm is evaluating an extra dividend versus a share repurchase. In either case, $16,320 would be
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Max Firm is evaluating an extra dividend versus a share repurchase. In either case, $16,320 would be spent. Current earnings are $3.10 per share, and the stock currently sells for $85 per share. There are 3,400 shares outstanding. Ignore taxes and other imperfections.
What will be the effect on max’s EPS and PE ratio under the two different scenarios?
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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EPS 31 MPS 85 274194 Shrs os 3400 Amt spent 16320 Stock repurchase Stock ...View the full answer
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9781265553609
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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