Winnebago is a familiar name on vehicles traveling U.S. highways. The company manufactures and sells large motor homes for vacation travel. These motor homes can be quickly recognized because of the company's "flying W" trademark. A July 2, 2007, press release contained the following information:

Required:

1. Determine the impact of this stock repurchase on the financial statements.

2. Why might the board have decided to repurchase the stock?

3. What impact will this purchase have on Winnebago's future dividend obligations?

4. Back on January 14, 2004, the company's board of directors declared a 2-for-1 stock split effected in the form of a 100 percent stock dividend distributed on March 5, 2004. Why would Winnebago choose a stock dividend rather than a stock split?

5. What impact would this stock dividend have had on Winnebago's financial statements? What impact would it have had on the EPS and ROE ratios?