The Key financial data for ABC Ltd is given below.,

Earnings per share for $2020$

Rs$.5\mathrm{.}50$

Number of shares outstanding

$40$ million

Target payout ratio

$50\%$

Planned dividend per share

Rs$.2\mathrm{.}75$

Stock price, year$-$end $2020$

Rs$.130$

ABC plans to pay the entire dividend early in January $2021.$

Should the company go for dividend payment or buy back shares? Please give proper justification.