Question: Flashback Corporation is evaluating an extra dividend versus a share repurchase. In either case, $23,940 would be spent. Current earnings are $3.00 per share, and
Flashback Corporation is evaluating an extra dividend versus a share repurchase. In either case, $23,940 would be spent. Current earnings are $3.00 per share, and the stock currently sells for $93 per share. There are 4,200 shares outstanding. Ignore taxes and other imperfections.
| Requirement 1: | |
| What will Flashbacks EPS and PE ratio be under the two different scenarios? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) |
| Extra Dividend | Share Repurchase | |
| EPS | $ | $ |
| PE Ratio |
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