Question: Taco Time Corporation is evaluating an extra dividend versus a share repurchase. In either case, $20,140 would be spent. Current earnings are $3.50 per

Taco Time Corporation is evaluating an extra dividend versus a share repurchase.

Taco Time Corporation is evaluating an extra dividend versus a share repurchase. In either case, $20,140 would be spent. Current earnings are $3.50 per share, and the stock currently sells for $89 per share. There are 3,800 shares outstanding. Ignore taxes and other imperfections. What will the company's EPS and PE ratio be under the two different scenarios? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. EPS $ PE Ratio Extra Dividend Share Repurchase 5.30 $ 0.98 X 16.79 X 90.82 X

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