Question: The Key financial data for ABC Telefilms Ltd is given below., Earnings per share for 2020 Number of shares outstanding Target payout ratio Planned dividend

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

Earnings per share for 2020

Number of shares outstanding

Target payout ratio

Planned dividend per share

Stock price, year-end 2020

Rs. 5.00

40 million

50%

Rs. 2.50

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 based on the change in the total value of firm to the shareholders and/or P/E ratio.

excel calculation needed

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