Question: 12.00 points Galles Corporation is evaluating an extra dividend versus a share repurchase. In either case, $10,000 would be spent. Current earnings are $1.90 per

 12.00 points Galles Corporation is evaluating an extra dividend versus a

12.00 points Galles Corporation is evaluating an extra dividend versus a share repurchase. In either case, $10,000 would be spent. Current earnings are $1.90 per share, and the stock currently sells for $50 per share There are 4,000 shares outstanding. Ignore taxes and other imperfections. a. Evaluate the two alternatives in terms of the effect on the price per share of the stock and shareholder wealth per share. (Do not round intermediate calculations. Round your answers to 2 decimal places, o.g, 32.16.) Price per share Shareholder wealth Price per share Shareholder wealth b. What will the company's EPS and P/E ratio be under the two different scenarios? (Do not round intermediate calculations. Round your final answers to 2 decimal places, e.g, 32.16.) EPS P/E ratio EPS P/E ratio References eBook & Resources Worksheet Learning Objective: 17-04 Why share repurchases are an alternative to dividends. MacBook Ai

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