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5 pts 2. I am on the board of directors of the Duffles Corporation, and Duffles has announced its plan to pay dividends of $1,650,000.
5 pts 2. I am on the board of directors of the Duffles Corporation, and Duffles has announced its plan to pay dividends of $1,650,000. Presently there are 550,000 shares outstanding, and the earnings per share are $18. It looks to me like the stock should sell for $90 after the ex-dividend date. What if, instead of paying a dividend, the management decided to repurchase stock? A. What should be the repurchase price that is equivalent to the proposed dividend (ignoring any tax effects)? show all warking 2.5 pts B. I want to look out for the small shareholders. If someone owns 1000 shares, do you think he would prefer that the company pay the dividend or repurchase stock? , Show all working 2.5 pts
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