Stock Repurchase. Salmon Arm Corporation is evaluating an extra dividend versus a share repurchase. In either case,
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Stock Repurchase. Salmon Arm Corporation is evaluating an extra dividend versus a share repurchase. In either case, $14,500 would be spent. Current earnings are $1.65 per share, and the stock currently sells for $58 per share. There are 2,000 shares outstanding. Ignore taxes and other imperfections in answering the first two questions.
a. Evaluate the two alternatives in terms of the effect on the price per share of the stock and shareholder wealth.
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781265553609
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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