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A company has had net income of $25 million in its most recent year and wants to distribute 40% of its net income to shareholders

A company has had net income of $25 million in its most recent year and wants to distribute 40% of its net income to shareholders through either dividends or stock repurchases. The firm currently has 2 million shares outstanding, trading at $80.

Part 1

What is EPS after a dividend payment?

What is EPS after a stock repurchase?

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