QUESTION TWO [25] CDL Ltd is deciding whether to pay out R100 000 in excess cash in the form of an extra dividend or implement a share repurchase. Net profit after tax is R155 000 and the share sells for R10. Their summarized statement of Financial Position prior to the dividend payment is as follows: Assets Tangible assets Inventories Receivables Bank/cash 340 000 50 000 70 000 Earnings per share Price-earnings ratio. 600 000 Equity and Liabilities Equity Total 500 000 100 000 600 000 Evaluate each alternative (i.e. pay the dividend or repurchase the shares) by calculating the: Number of shares in issue. Dividends per shares (only for the first alternative, L.e. pay the dividend). New share price (3) (9) (5)