Question: Remaining Time: 1 hour, 42 seconds Question Completion Status 1 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18

 Remaining Time: 1 hour, 42 seconds Question Completion Status 1 3

Remaining Time: 1 hour, 42 seconds Question Completion Status 1 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Question 7 8 points A firm is considering two alternatives dividend versus a share repurchase. In either case, a fimm would spend $500,000. Net income of the company $1,000,000, and the stock currently sells for $50 per share. There are 100,000 shares outstanding. Ignore taxes and other imperfections a) What will be EPS if a firm decides to give dividend? b) What will be PE ratio if a firm decides to give dividend? c) What will be EPS if a firm decides to use a share repurchase? d) What will be PE ratio if a firm decides to use a share repurchase? TT T Arial 3 (12pt) TEE B Ep

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