Question: Fana Inc is evaluating two (2) alternatives, either to do a stock repurchase or extra dividend. To do so, the firm will need to spend

Fana Inc is evaluating two (2) alternatives, either to do a

Fana Inc is evaluating two (2) alternatives, either to do a stock repurchase or extra dividend. To do so, the firm will need to spend RM9,000. The stock is currently selling at RM64 per share, with an earning of RM1.30 per share. There are 1,000 shares outstanding. Ignoring taxes and other implications, evaluate both alternatives on the effect on the price per share of the stock and shareholder wealth

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